Download Insider`s Guide to School Business and Internal

Insider’s Guide to School Business
and Internal Accounts
Letter from the CFO ......................................................................................................... i
Introduction ......................................................................................................................ii
Guiding Principles ............................................................................................................ii
Contact Information.........................................................................................................vi
1.
Administration ....................................................................................................... 1-1
A. Roles and Responsibilities................................................................................. 1-1
B. Internal Controls................................................................................................. 1-6
C. Transition of Principals....................................................................................... 1-6
D. Transition of Clerks, Treasurers, and Business Managers ................................ 1-9
E. Schools Closing ............................................................................................... 1-10
F. Audits and Investigations ................................................................................. 1-11
G. Financial Supervision....................................................................................... 1-12
H. Educational Crisis ............................................................................................ 1-13
I.
2.
Checklist and Chapter Review......................................................................... 1-14
Money Handling .................................................................................................... 2-1
A. Money Handling Procedures.............................................................................. 2-2
B. Banking ............................................................................................................ 2-13
C. Investments...................................................................................................... 2-15
D. Loans and Accommodations from School Internal Accounts........................... 2-18
E. Checklist and Chapter Review......................................................................... 2-19
3.
Purchasing ............................................................................................................ 3-1
A. Purchasing Procedures...................................................................................... 3-2
B. Approved Expenditures...................................................................................... 3-8
C. Prohibited Expenditures..................................................................................... 3-9
D. Contracts.......................................................................................................... 3-11
E. Board Reports.................................................................................................. 3-12
F. School Sport Officials....................................................................................... 3-13
G. Reimbursement and Advances from School Budget Line ............................... 3-15
H. Electronic Data Interchange - EDI ................................................................... 3-18
4.
I.
Web Inquiry...................................................................................................... 3-18
J.
Checklist and Chapter Review......................................................................... 3-19
Bookkeeping ......................................................................................................... 4-1
Table of Contents
i
Insider’s Guide to School Business
and Internal Accounts
A. Accounting Basics.............................................................................................. 4-4
B. Procedures using M.Y.O.B.™ (7.0) ................................................................. 4-14
C. Other Bookkeeping Methods ........................................................................... 4-38
D. Accounting/Bookkeeping Service .................................................................... 4-38
E. Auditing ............................................................................................................ 4-38
F. Checklist and Chapter Review......................................................................... 4-39
5.
Revenue Generation ............................................................................................. 5-1
A. Permit Fees and Leasing School Property ........................................................ 5-2
B. Student Activity Fees ......................................................................................... 5-7
C. Entertainment and Athletic Fees........................................................................ 5-9
D. Graduation ....................................................................................................... 5-11
E. Photographs..................................................................................................... 5-13
F. Grants, Gifts, and Donations............................................................................ 5-15
G. Single Fundraising Activities ............................................................................ 5-17
H. Continuous Fundraising Activities and Concession Sales ............................... 5-26
I.
Vending Machines - Beverages ....................................................................... 5-27
J.
Other Revenue Sources .................................................................................. 5-31
K. Checklist and Chapter Review......................................................................... 5-32
6.
Records Management, Retention, and Disposal .................................................. 6-1
A. Schools .............................................................................................................. 6-2
B. Administrative Offices and Departments............................................................ 6-4
Appendix A – Internal Accounts ...................................................................................... 1
Chart of Accounts .................................................................................................... 2
Trial Balance Sample............................................................................................... 3
School Sport Officials Form ..................................................................................... 4
Petty Cash Reconciliation ........................................................................................ 5
Student Fee Waiver Form ........................................................................................ 6
Tax Identification and Exemption Letter................................................................... 7
Appendix B – Cash Receipts/Revenue ........................................................................... 1
Treasurer’s Receipt.................................................................................................. 2
Teacher’s Receipt .................................................................................................... 4
Payor List ................................................................................................................. 6
Table of Contents
ii
Insider’s Guide to School Business
and Internal Accounts
School Usage Permit ............................................................................................... 7
Concession Sales Accounting Report...................................................................... 8
Ticket Accounting Report......................................................................................... 9
Perpetual Inventory Card/Report ........................................................................... 10
Check Transmittal Form......................................................................................... 12
Grants, Gift, and Donations Access Request Form ............................................... 13
Receipt Memorandum............................................................................................ 14
Appendix C – Fundraising............................................................................................... 1
Local School Fundraising Accounting Proposal....................................................... 2
Local School Fundraising Accounting Report .......................................................... 4
Appendix D – Cash Advances, Payables, and Purchasing............................................. 1
School Expenditure Requisition Order..................................................................... 2
Requisition Worksheet ............................................................................................. 3
School Cash Advance Reconciliation ...................................................................... 4
Web Inquiry.............................................................................................................. 5
Oracle Budget Transfer Tool.................................................................................. 12
Reimbursement Form ............................................................................................ 13
Letter of Funds Distribution Request ..................................................................... 14
Appendix E – Assets and Equipment .............................................................................. 1
Furniture and Equipment Register ........................................................................... 2
Asset Transfer and Disposal Form .......................................................................... 3
Instructions for Completing the Asset Register and the Asset Transfer/Disposal
Forms....................................................................................................................... 4
Burglary and Theft Report........................................................................................ 5
Appendix F – Policies and Procedures ........................................................................... 1
Policy Regarding Financial Supervision................................................................... 2
Policy on Educational Crisis..................................................................................... 3
Amend Resolution 86-0625-RS1, Resolution Concerning Misappropriated or
Misused School Funds............................................................................................. 4
Imposition of Charges on Returned Payment Instruments ...................................... 5
Investment Policy..................................................................................................... 6
Debt Management Policy ......................................................................................... 7
Student Travel.......................................................................................................... 8
Table of Contents
iii
Insider’s Guide to School Business
and Internal Accounts
Reimbursement for Work-Related Expenses........................................................... 9
Purchasing Board Report Procedures ................................................................... 10
Code of Ethics........................................................................................................ 11
Maintenance and Disposal of Assets..................................................................... 12
Guidelines for Establishing Elementary and High School Student Fees ............... 13
Policy Regarding Waiver of School Fees............................................................... 14
Acceptance of All Grants, Gifts, and Donations..................................................... 15
Policy on Local School Council Fundraising .......................................................... 16
Retention and Management of Business Records................................................. 17
Guidelines for Maintenance of Student Records ................................................... 18
Parent and Student Rights of Access to and Confidentiality of Student Records .. 19
Compliance with Freedom of Information Act Requests ........................................ 20
State Chapter 1 Expenditure Guidelines................................................................ 21
Appendix G – Frequently Asked Questions .................................................................... 1
Controller’s Office/General Accounting.................................................................... 1
Accounts Receivable ............................................................................................... 3
Grant Acceptance .................................................................................................... 6
Grant Reporting ....................................................................................................... 7
Accounts Payable .................................................................................................... 7
Internal Accounts Survey ......................................................................................... 9
Internal Accounts Manual ...................................................................................... 11
Table of Contents
iv
Letter from the CFO
Dear Colleagues:
Chicago Public Schools are not only faced with the daunting task of educating
our students, but also with adhering to all Board policies, recommended business
processes, and routine procedures. This user’s guide attempts to assist schools
with the required business functions and policies by providing schools with the
most current information in one easy to use reference document. Additionally, we
have changed the name of the internal accounts manual to reflect the expanded
information it contains.
The Office of School Financial Services would like to thank all schools for their
continued support in the completion of the annual Internal Accounts survey and
fixed asset registers collection project. Each year, school participation and data
accuracy increases. The survey is important, as current governmental accounting
rules require CPS to disclose the status of all accounts in the Comprehensive
Annual Financial Report (CAFR). Additionally, this data is used as the basis for
many key financial initiatives, which help to reduce administrative costs.
As we continue to make progress in these areas, School Financial Services also
will focus on the following areas: Kronos upgrades and training, Accounts
Payable enhancements, and M.Y.O.B.™ training. A new web page design will
make all financial policies and forms accessible on CPS’ website. The Office of
School Financial Services continues to research software and process upgrades
to streamline schools’ and Central Office units’ business functions. These
system-wide enhancements not only result in cost savings and better financial
reporting, but also in moving the school district toward a paperless work place.
In summary, the Office of School Financial Services wants to assist schools with
becoming savvy financial and administrative managers. The information we
receive from you helps shape not only how we create programs for the schools
and district, but also how CPS implements financial and business policies. This
manual is one of the numerous tools provided to the schools to facilitate business
functions. Please feel free to contact our office at 773-553-2710 for additional
information, manuals, questions, or feedback.
Sincerely,
John Maiorca
Chief Financial Officer, Chicago Public Schools
Introduction
i
Introduction
The Board of Education of the City of Chicago believes that the responsibility for
each Chicago public school rests with its principal. Keeping with that policy, the
Office of School Financial Services prepared this manual to help schools manage
their Internal Accounts efficiently and effectively. The School Code of Illinois,
Section 10-20.19 (3), gives the Board the authority to establish rules and
regulations for collecting, spending, and safeguarding funds generated by the
schools.
Furthermore, the Board of Education cites school Internal Accounts as a fund
group in its annual report. We are required by GAAP (General Accepted
Accounting Principles) to fully disclose the value of school Internal Accounts at
the end of each fiscal year.
This manual is one in a series of documents being developed to help principals
manage the business aspects of running a school.
Guiding Principles
Five guiding principles have been identified for the financial management of a
Chicago public school:
1. Spend the money wisely. Purchase only those items or services that benefit
educational programs and the student body.
2. Spend the money in the proper time frame.
3. Use the money for its intended purpose.
4. Follow the procedures approved by the Board of Education as stated in this
manual, as amended.
5. Keep good records.
If you follow these principles and use the tools provided, you should have the
information and control necessary to manage the business aspects of your
school or unit.
What are School Internal Accounts?
Each school has two sources of funds to spend on its educational and extracurricular activities: the school’s budget line account and the school’s Internal
Accounts. Local, state, and federal governmental revenues primarily fund the
school budget line account. The school’s Internal Account is a cash management
system to handle the cash that flows through each school from students, parents,
and the community. The sources of this cash are varied: student fees,
fundraising activities, special events, lease income, and gifts or grants. Good
financial management, budgeting, and record keeping are necessary for both
accounts.
Introduction
ii
What does it mean to spend funds wisely?
School funds should be spent on the best educational programs and for the
benefit of the students.
Why should I keep good records?
As principal, you are responsible for protecting the interests of students and
taxpayers. Time management specialists can demonstrate how much faster and
more efficiently records can be maintained if information is tracked immediately
rather than waiting several days or weeks. Tracking your spending on a regular
basis lets you know how much money is available so that you do not over- or
under- spend your budget.
Good documentation helps you and your LSC work effectively toward your goals
and can keep you from being accused of mismanagement. Failure to keep
accurate records can result in an audit exception, potentially placing your school
on financial supervision. Chapter 4 gives more specific instructions for good
record keeping.
What records do I need to keep?
The management of school funds must follow the same business practices,
including budgetary accounting and auditing procedures, that are used for
regular Chicago Public Schools’ funds. All funds received by the school must be
receipted. The original invoices and receipts must support all disbursements. All
records must be kept at your school.
As a rule, all schools must maintain paper copies of the following records, which
should be updated on a monthly basis:
Reconciliation Report
Trial Balance Summary
Cash Receipts Journal
Monthly Bank Statement
Cash Disbursements Journal
School Equipment and
Furniture Register
General Ledger
General Journal
Chapter 6 provides specific details on this important task of record keeping.
What do you mean by “spend the money in the proper time frame and for its
intended purpose”?
School funds must be spent only to benefit those students currently in school
who have contributed to those funds. Fundraising projects must benefit the
student body and the school program that collects the money. As a general rule,
try to spend 95% of all funds credited to your Internal Accounts within the school
year when they were raised.
Funds deposited in the school’s Internal Accounts by the Board, such as teacher
instructional supply funds, carfare and State Chapter I funds, must be spent
during the year for which they were budgeted. Unspent funds should be returned
to the Board.
Introduction
iii
Fees, gifts, grants, and advances collected for specific purposes must be spent
only for their stated purpose. Funds from the student body must be spent to
benefit the student body.
Finally, be aware of prohibited expenses. Chapter 3 Section C - Prohibited
Expenditures lists expenditures that are prohibited by either Board rule or policy.
Will I be audited?
Internal and external auditors visit schools throughout the year. Most of the visits
will be announced, but some will be unscheduled. Audits are an opportunity to
show your community your good financial management skills. At the end of each
section, School Financial Services reviews what is necessary to meet our
auditors’ standards for Internal Accounts. If you use these checklists and keep
your books up-to-date, you will probably pass the audit process.
Please Note: Auditors can inspect other records and documents in addition to
your Internal Accounts.
What is an audit exception?
When an auditor identifies a record-keeping error or incomplete records, the
auditor prepares a written report documenting the problem and what policy or
procedure has not been followed. This report is referred to as an “audit report”
and any rule or procedural infraction is referred to as an “audit exception.” If an
audit exception is discovered at your school, you should prepare a written
response to the Controller’s Office, Internal Audit, and the area office. This
response must include a plan to correct the problem and should identify new
procedures, additional controls, and restitution, if necessary, to ensure that the
problem does not occur again.
May I raise more money for my school?
The principal is responsible for approving each student activity fund. Funds may
be raised in addition to the amounts provided in the Chicago Public Schools’
budget. Permission to raise funds must be obtained in writing from the principal
and approved by the LSC for outside fundraising organizations.
Additionally, area office approval is required for all fundraising activities
regardless of the amount being raised. This is a change from the past practice
when no area approval was necessary if funding did not exceed $1000.
Fundraising projects should contribute to the educational experience of pupils in
accordance with the School Improvement Plan (SIP). Long-range projects for
which adequate funds cannot be raised in one fiscal year must be included in the
SIP and approved by the principal and LSC. Projects of this type may include
efforts to acquire new band uniforms, pianos, athletic equipment, or other items.
More information on fundraising is included in Chapter 5.
Introduction
iv
What if I am a new principal or a new clerk?
New principals have resources available to help them understand and take
charge of their school’s finances. Chapter 1 Section B - Changing Principals, lists
some of those resources and provides a checklist of actions to get a new
principal started. If financial records are not available or are not in good order,
call your Region Business Manager for assistance.
New clerks have training available in the areas of payroll, purchasing, budgeting,
grant acceptance, Internal Accounts, and the Internal Accounts software,
(M.Y.O.B.™). New principals and clerks can receive training on the Internal
Accounts procedures by contacting their Region Business Manager. Training on
the Internal Accounts software (M.Y.O.B.™) is available by contacting the Office
of School Business Services.
What do the icons mean?
Throughout the manual, we have used the following icons to help you quickly
locate information.
Mandatory Board policy
Important phone numbers
An idea from a colleague
Required record keeping
Best practices
Potential audit finding
Introduction
v
What is the best way to use this manual?
Use this manual as a way to ensure your systems are up-to-date and in line with
current Board policies. We have tried to identify only those requirements that are
necessary for good financial record keeping. If you have ideas or methods that
work for you, please inform us and we will try to pass along these ideas for the
benefit of all.
If you are a new principal, this manual has practical suggestions for setting up
your accounts and tracking your receipts and expenditures. This manual provides
information on both manual and electronic bookkeeping. Schools are encouraged
to use the Internal Accounts software (M.Y.O.B.™) to help manage their
finances.
The Office of School Financial Services has purchased the M.Y.O.B.™ software
and provides training to help you make the transition to electronic bookkeeping.
For more information about this software, please contact the Controller’s Office,
773-553-2710.
Where can I locate this manual online?
The Insider’s Guide to School Business and Internal Accounts may be located
online at http://www.cps.k12.il.us/AboutCPS/Departments/finance/IAmanual/
Contact Information
This manual is a work-in-progress and can be used as a source of information
with suggestions from colleagues and experienced managers. If you have a
better way or more creative approach from which other schools can benefit,
please inform us.
Any recommendations for revising or amending this manual can be
submitted to the Bureau of General Accounting. This manual is reviewed
periodically to ensure that it is as up-to-date and as informative as
possible. We value your comments and encourage you to contact us at:
Bureau of General Accounting
125 South Clark Street, 14th Floor
Mail Run #125
773-553-2740
Introduction
vi
1. Administration
A. Roles and Responsibilities
The Board of Education of the City of Chicago (CBOE)
The Chicago Board of Education’s mission is to ensure that the Chicago Public
Schools educates the city children to their fullest potential as individuals so that they
may be productive members of society. The Board sets broad policy to ensure that
schools are properly managed and that sufficient financial controls are in place. For
this reason, the Board must approve all biddable purchases in amounts above
$10,000 and above and professional service contracts in amounts greater than
$75,000. The Chief Purchasing Officer must approve professional service contracts in
amounts between $25,001 and $75,000.
The Chief Financial Officer must approve the acceptance of all gifts and grants made
to the schools.
Principal
The school principal is directly responsible for the conduct of all school financial
activities in accordance with the rules, policies, and procedures. Authorizing staff to
act in the principal’s place does not negate the principal’s overriding authority and
responsibility.
Local School Council
For all Internal Accounts activities, Local School Councils (LSCs) have the authority
to approve all receipts and expenditures over $1,000 at elementary schools and
$2,500 at high schools for all CPS attendance centers. On a monthly basis, LSCs
have the right to review and approve receipts, and expenditures for all school Internal
Accounts. Each school should submit to its LSC a copy of the Internal Accounts Trial
Balance Summary and a copy of the school’s monthly bank reconciliation.
LSCs also approve all fundraising activities by non-school organizations using school
facilities.
Administration
1-1
School Clerk/Treasurer
The school clerk, Treasurer, or other staff person designee is responsible for
reporting and receipting all school funds, maintaining accurate financial records, and
following money-handling procedures as stated in this manual. At the end of each
monthly reporting period, it is the responsibility of the clerk, or designee, to make
available to the area office the Internal Accounts records for each student activity.
Teachers
When teachers sponsor student activities or serve in a capacity that involves handling
school Internal Accounts’ monies, they are responsible to report to the principal and
should follow the rules and procedures in this manual. Teacher-sponsors should
reconcile the records of the activity with the Treasurer’s monthly report.
Office of School Financial Services
The Office of School Financial Services is made up of the Departments of the
Controller, General Accounting, Accounts Payable, Accounts Receivable, Treasury,
School Business Services, Treasury and Debt Management, Payroll, and Risk
Management. The Office of School Financial Services is under the direction of the
Chief Financial Officer and has the responsibility and authority to implement all
policies and rules pertaining to the supervision and administration of school Internal
Accounts.
Controller’s Office
The Controller’s Office is responsible for the management and control of all financial
matters of the Chicago Public Schools as well as providing direction and
management of financial affairs in the schools.
Bureau of General Accounting
The Bureau of General Accounting is comprised of the Reporting and Revenue
Divisions. The Reporting Division provides service to schools by: depositing all nonInternal Account related checks; answering questions and resolving issues related to
Internal Accounts; providing accounting-related support for the M.Y.O.B.™ accounting
software program; preparing checks; and processing requests for position numbers.
The Bureau of Revenue supports schools by answering questions related to claims
and grants.
Administration
1-2
Bureau of Accounts Payable
The primary responsibility of the Bureau of Accounts Payable involves paying
vendors in a timely manner.
School Business Services
School Business Services develops top-quality business practices and measures that
serve as models for individual units; coordinates workshops and training; educates
business managers and principals to be accountable and fiscally responsible; and
organizes monthly reports to the CFO. School Business Services provides a wide
range of workshops that cover the following topics: Internal Accounts, M.Y.O.B.™,
Budget, AIMS, Purchasing, Accounts Payable, and Business Manager, clerk, and
new principal training. In addition, SBS provides support and assistance in all areas
of school finance. This support includes school visits when practical.
School Office Services
The School Business Support Services Program provides schools with
troubleshooting assistance, one-on-one site based training, and support in all areas
of school finance. This program ensures a school's financial compliance and greatly
reduces audit exceptions. For more information please call 553-3278 or 553-2785.
Bureau of Treasury and Debt Management
The Bureau of Treasury receives all checks and letters of credit from government
agencies. This bureau manages CPS treasury operations and debt financing
activities to optimize cash flow and investment earnings and to obtain the lowest cost
financing for capital projects.
Bureau of Payroll Services
The Bureau of Payroll Services provides correct, timely, and professional payroll
services, including maintaining accurate earning reports, to the schools and
employees at the Chicago Public Schools. Kronos support and training are also
offered by Payroll Services.
Bureau of Risk Management
The Bureau of Risk Management is responsible for maintaining liability and property
insurance, managing claims, establishing contractual insurance requirements,
maintaining the field trip vendor list, and administering the extracurricular/athletic
injury program.
Administration
1-3
Bureau of Real Estate
The Bureau of Real Estate falls under the Operations Department. This bureau
prepares all Board reports related to the lease or permit income raised from the use
of school property. Sale of real estate also is processed through the Bureau of Real
Estate.
Office of Management and Budget
The Office of Management and Budget assist with handling, approving, and setting
up all grants and gifts from both government and non-government sources.
This office also maintains a database of available gift and grant donors. This Office
must be notified of all gifts and grants received directly by the school.
Department of Procurement and Contracts
The Department of Procurement and Contracts is responsible for the delivery of
quality goods and services at the lowest cost from responsible vendors. This
department also maintains a list of approved vendors and provides vendors with
Vendor Identification Numbers. The Purchasing department also conducts specific
iProcurement and other training.
Homeless Education Program
The Chicago Public Schools (CPS) provides an educational environment that treats
all students with dignity and respect. Every CPS homeless student shall have equal
access to the same free and appropriate educational opportunities as students who
are not homeless.
This commitment to the educational rights of homeless children and youths applies to
all the services, programs, and activities provided or made available by CPS. To
create the appropriate educational environment and opportunities for CPS homeless
students, CPS has a Homeless Education Program documented in the Homeless
Education Program Manual.
Request for copies of this manual and any questions on the Homeless Education
Program should be addressed to:
Chicago Public Schools
Office of Instruction and School Management
125 S. Clark Street – 8th Floor
GSR 125
Attention: Coordinator, Homeless Education Program
Phone: 773-553-2242
Fax: 773-553-2182
Administration
1-4
Inspector General
The Office of the Inspector General (OIG) is an independent body accountable
directly to the Board. This group is charged with investigating allegations of waste,
fraud, and financial mismanagement within the Chicago Public Schools. The OIG
investigates allegations of employee residency, student residency (tuition fraud),
employee misconduct, including theft, falsification of attendance records,
misuse/unauthorized use of CPS property, misappropriation of funds, misuse of the
internet, and any criminal activity engaged in by employees – on or off duty. Also, the
OIG investigates allegations of vendor misconduct including breach of contract, overbilling, M/WBE fraud, etc.
Area Instructional Officers (AIOs)
Each area office is led by an instructional officer. Area Instructional Officers (AIOs)
are in charge of two teams - an instructional support team and a management
support team. Instructional Officers conduct regular instructional walk-throughs and
meet regularly with leadership teams to evaluate progress on goals.
Region/Cluster Business Managers
The Region Business Managers provide administrative support to their schools. This
support includes answering bookkeeping questions, advising on purchasing
questions, and training of school personnel. The Region Business Managers are
trained in M.Y.O.B.™.
School Business Managers and School Operations Managers
School Business Managers and School Operations Managers report directly to the
principal. They are responsible for various administrative functions and duties. These
positions provide the principals with additional support of their day-to-day functions.
The individuals in these positions work with the school, area, and central office staff
to deliver services to the schools.
Typical areas of responsibility include functions related to finances, contracts,
facilities, food services, personnel management, information technology, security,
transportation, and general school administration. Other responsibilities may include
dealing with school Internal Accounts, budgets, purchasing, position control, payroll,
inventory, subsidized meal applications, records maintenance, and other noninstructional related duties.
Administration
1-5
B.
Internal Controls
Internal control should be built into the infrastructure of each school. When controls
are integrated with operational activities, and a focus on controls has been instilled in
all personnel, the result is better control with minimum incremental cost.
Schools may want to create written policies and procedures guidelines
including formal job descriptions detailing responsibilities and describes
management policies, standards of ethical behavior, acceptable practices,
and conflicts of interest.
Implementation of Control Objectives
•
Appropriate authorization (proper signatures and system approvals)
•
Segregation of duties
•
Adequate documentation and records
•
Independent checks on performance
Documents and records
Documents should be designed to facilitate collection of all relevant information. They
should provide space for proper authorizations, receipt of assets, etc. and should be
prenumbered - account for all documents, reducing likelihood of fraudulent use
Records should create an audit trail, which creates path that a transaction traces
through a system. This allows for verification and consistency of reference numbers,
dates, etc.
C. Transition of Principals
Responsibilities for outgoing and incoming Principals:
The following items should be completed to ensure a smooth transition from one
principal to the next. These items bring closure to the outgoing principal’s tenure and
assist the incoming principal with learning the school’s Internal Accounts status as
well as safeguarding the school’s assets. Principals should call their Region Business
Manager for assistance with these items. Any discrepancies must be resolved prior to
the change in administration.
Administration
1-6
Outgoing Principal
•
Ensure that the books of record are posted to date.
•
Ensure that the Internal Accounts monthly reports are submitted for the most
recent month and that the school is maintaining its records accurately and timely.
•
Verify that the reconciled bank statement and the Trial Balance for the previous
month are in agreement.
•
Update Concession Sales Accounting Reports for all continuous sales.
•
Review the Concession Sales Accounting Reports for all sales conducted
during the past fiscal year to ensure the accounting of all money/merchandise.
•
Ensure that approved Ticket Accounting Reports are on file for the activities in
which tickets were utilized.
•
Secure all outstanding Teacher Receipt books. All receipted money previously
not submitted by teachers must be deposited immediately with the School
Treasurer.
•
On the date of the change of administration, Treasurer’s Receipts must be
reconciled with bank deposits and cash-on-hand to account for all money not
deposited at the end of the previous month, but collected during the current
month.
•
The following documents must be reviewed and signed by the outgoing principal
and the representative of the Area Instruction Office to indicate that the
documents have been reviewed and are accurate:
Cash Account
Internal Accounts Trial Balance and Reconciliation reports
Reconciled Bank Statement
Concession Sales Accounting Reports
Fixed Asset Inventory
Administration
1-7
Incoming Principal
•
Request a transition audit from the Department of Audit Services. Please call 773553-1481 to schedule this audit.
•
Study the financial statements and the most recent audit report. If the report is not
available at the school, a copy should be requested from the Department of Audit
Services. The principal should review the audit report and ensure that the audit
exceptions have been corrected.
•
As of the date that the administration changes, obtain signature cards from the
school’s depository institution prior to the transfer. The new cards must add the
name of the incoming principal and delete the name of the outgoing principal as
authorized check signatories. School Financial Services recommends having a
minimum of three signers for bank accounts. Schools are to have only one
checking account.
•
Run an Activity Report to verify budget line balances and reconcile Board of
Education budgets and Internal Accounts balances.
•
Run a report on all open purchase orders to verify agreement with any funds to be
spent and/or merchandise to be received. This information can be obtained using
the iProcurement system.
•
Change the passwords on all systems where the outgoing principal had access,
such as the Student Information system and the iProcurement system. To change
passwords on the online systems, complete the Oracle Access form located at
http://appsmt.csc.cps.k12.il.us:8000/OA_HTML/US/Oracle User ID Request
v3.doc or contact the Office of Technology Services (OTS) at 773-553-1300.
•
Change password for Kronos Time and Attendance and Corrected Attendance
Reporting (CAR) approvals.
•
If necessary, ask the Bureau of General Accounting to verify the latest Assets
inventory.
•
Collect all keys to school door locks, and if necessary, change the locks.
Administration
1-8
D.
Transition of Clerks, Treasurers, and Business
Managers
All new school clerks, treasurers, and business managers have numerous training
opportunities and resources available. The following is a list of these services
providers.
•
For Kronos training, please contact the Bureau of Payroll Services at 773-5532660.
•
For grant acceptance training, please contact the Bureau of Revenue at 773-5532394.
•
For requisition/iProcurement/receiving training, please contact the Department of
Purchasing at 773-553-2280.
•
For Oracle Public Sector Budgeting and Position Control (PC) training, please
contact the Office of Management and Budget at 773-553-2560.
•
For Internal Accounts and M.Y.O.B.™ software training, please contact School
Business Services at 773-553-2712.
•
For Student Information system (Project IMPACT) training, please contact the
IMPACT help desk at 773-553-4672.
Administration
1-9
E.
Schools Closing
When a CPS school closes, the closing school’s Internal Accounts funds (from both
checking and investment accounts) follow the students that had been attending the
school. Given that the students from the closed school may be dispersed to various
CPS locations, the internal account funds should be transferred to all of the schools
where these children are sent. After all the closing school’s outstanding debts have
been paid, remaining funds should be dispersed at a percentage equal to the
percentage of the closing school’s students now attending the new school. For
example, School X closes. After School X pays all outstanding debts, it has $100,000
in its Internal Accounts. If 40% of School X’s students go to School Y and 60% go to
School Z, then School Y would receive $40,000 and School Z would receive $60,000.
School X would provide School Financial Services all money and student
disbursement information. School Financial Services will work with the Office of
Management and Budget to ensure the money is allocated correctly.
Prior to a school closing, all Internal Account information must be balanced and
verified. The online Internal Accounts assessment must be completed in full and
supporting documents (bank statements and reconciliation reports) must be sent to
the Office of School Financial Services. Please contact the Internal Accounts hotline
at 553-4271(IAS1) or E-mail [email protected] for further information or
assistance.
In compliance with Board Policy, closing schools must complete the Asset
Transfer/Disposal Form
(http://www.cps.k12.il.us/AboutCPS/Departments/finance/forms/Asset_Disposal_Tran
sfer_Form.xls) when relocating any items valued at $500 or more from the closing
school to another location. Items valued at $500 or more that will remain within the
building must be documented on the Asset Register
(http://www.cps.k12.il.us/AboutCPS/Departments/finance/forms/Asset Register.xls)
and submitted at the end of the fiscal year.
In addition to completing the asset information and Internal Accounts requirements,
lunchroom seed money should be returned to the General Accounting Department at
the end of the fiscal year.
Administration
1-10
F.
Audits and Investigations
What is a school internal audit?
An internal audit is the process through which the Department of Audit
Services examines a school’s financial records and practices. A school audit is
conducted to ensure that schools adhere to budgets previously submitted, Internal
Accounts policies and procedures, and in some cases, federal, state, and local laws.
What is an Investigation?
In cases where allegations of financial improprieties exist, the Inspector General is
contacted to investigate whether or not such allegations have merit.
Does the school receive notice prior to the audit?
Generally, advance notice is given for routine audits. If notice is not given, audit
personnel will identify themselves upon arrival.
What constitutes an audit exception?
An audit exception is any information and/or material or transactions that are contrary
to established policies, procedures, rules, regulations, and laws.
What if I am not prepared for the auditors?
A school should always be prepared for the auditors by following the procedures
given in this manual. For example:
•
The Treasurer’s Receipts are recorded in the ledger.
•
The checks written are recorded in the ledger.
•
The Internal Accounts reports have been prepared through the most recently
completed month.
If funds were misused or inadequate records and documentation were kept, financial
restitution and penalties may be required. Depending on the circumstances, financial
supervision, high-level monitoring, and punitive measures may be taken. For more
information, please refer to the CPS policies Policy Regarding Financial Supervision
and Policy Regarding Misuse of School Funds in Appendix F.
Please request a transition audit of school Internal Accounts of the outgoing
administration. Review any corrective actions that need to occur. Focus on
purchasing, cash receipts, disbursements, monthly reconciliations, payroll, and
assets.
Administration
1-11
Fraud
Any instances of fraud should be reported immediately to the Office of the Inspector
General (OIG) at 773-534-8711 or 773-48-FRAUD. Instances of fraud may include
unauthorized reimbursements, submitting unauthorized receipts for reimbursements,
theft or misappropriation of funds, undocumented expenditures, or any other financial
improprieties. The OIG handles complaints in a confidential manner.
G. Financial Supervision
What is Financial Supervision?
According to Board policy, “A school may be placed on financial supervision for
violating mandates governing Internal Accounts and the maintenance of proper
documentation of school account activity”. Please refer to Appendix F for additional
information.
What are the facts that may be considered in determining whether a school should
be placed on financial supervision?
•
“Whether the internal books of the school have been lost, destroyed or are
significantly in arrears;
•
Whether funds are missing, not properly accounted for, or inappropriately used;
•
Whether funds received from federal, state, or locally funded programs were
improperly used, documented or unaccounted for.”
“A school placed on financial supervision may be subject to one or more of the
following measures:
•
Mandatory training of appropriate staff
•
Ongoing monitoring of Internal Accounts and financial activities
•
Appointment of a financial receiver
•
Issuance of a Warning Resolution
•
Restitution
“The remedial measure imposed shall be reviewed periodically, but no less than
every six months, and shall be progressively removed or abated as warranted by the
school’s progress toward correcting the deficiencies identified.”
Administration
1-12
H.
Educational Crisis
What is an educational crisis?
The Chief Executive Officer has the power to determine when a school is
undergoing an educational crisis and to authorize immediate corrective action.
Many criteria are used to determine the existence of an educational crisis.
Examples include: repeated failure by the principal to properly spend all school
funds, including the budgeted, discretionary, and Internal Accounts funds.
What happens if a school is declared to be in the midst of an educational
crisis?
Should the Chief Executive Office declare a school in educational crisis, then “a
plan shall be implemented to ensure educational stability at the attendance
center, and alleviate the crisis.” Please refer to “Criteria Governing the
Determination of Educational Crisis” for additional information.
Please refer to Appendix F for the CPS Policy on Educational Crisis.
Administration
1-13
I.
Checklist and Chapter Review
The Cluster or Region Business Manager should be contacted for assistance
during the principal’s transition.
A new principal must ensure the signature cards and passwords are
changed.
The new principal must run a report on all open purchase orders to give
consent for spending proposals.
The new clerk should contact the School Business Services for training on
Internal Accounts procedures.
A school may be placed on financial supervision if it violates policies
associated with maintaining the Internal Accounts.
A school may be considered to be in the midst of an educational crisis if it
fails to keep accurate Internal Accounts records.
Administration
1-14
2. Money Handling
General Guidelines
•
All money collected from the students should be properly receipted using a
Teacher’s Receipt Book or Payor List, and Treasurer’s Receipt Book.
•
All money received by the school must be receipted and recorded by the
School Treasurer in the Cash Receipts Journal.
•
The School Treasurer, Business Manager, Operations Manager, or Clerk is
responsible for handling all Internal Accounts transactions, cash, and
paperwork.
•
All money should be deposited in the bank as soon as possible for
safekeeping. At a minimum, weekly deposits are required.
•
Good receipting provides an audit trail and the necessary information to
document all money that enters the school.
Money Handling
2-1
A.
Money Handling Procedures
Collect money
Every time money is collected, the Treasurer’s Receipt must indicate:
•
Source of funds (Who/How?) (i.e., received from)
•
Amount of collection (What?)
•
Reason for collection (Why?)
•
Date of collection (When?)
•
General Ledger Sub Account (Where?) (i.e., to be credited to)
•
Teacher’s Receipt Number
All Treasurers’ Receipts must be posted to the Cash Receipts Journal
immediately.
Not properly receipting the collection of money, whether cash or check, is an
audit exception.
How often should money be deposited with the School Treasurer?
All money collected from students should be counted and deposited with the
School Treasurer daily. A Treasurer’s Receipt shall be prepared immediately. A
back-up plan should be established if a teacher collecting money is unable to
transfer the money to the School Treasurer each day. Staff should not take money
home with them and should not leave money in a place that is not secure.
Within the back-up plan, the assistant principal may be an appropriate
substitute for the School Treasurer.
Money Handling
2-2
Prepare receipts
How can money be receipted?
Individuals other than the School Treasurer often collect funds from students for
various purposes. In response, this manual presents different ways of receipting
money.
Money collected in any manner must be deposited with the School Treasurer and
a copy of the school Treasurer’s Receipt must be provided to the person making
the deposit.
The following is a list of guidelines for specific types of collections. Information on
completing these receipts and sample forms are included in Appendix B. Tracking
of concession sales and other fundraising activities is described in Chapter 5 Revenue Generation.
Collections from Students
Teachers who collect money from students should prepare records indicating the
amounts collected. Examples of collections are field trips, graduation fees, and
activity fees. The teacher can use a Teacher Receipt Book or a Payor List to
receipt the money. Payor Lists are recommended for collections that are the
same or standard and have a nominal dollar amounts (i.e. under $10).
Receipt books should be turned in after each activity and at the end of each year.
PLEASE NOTE: A Teacher Receipt Book should be used when a parent
requests a receipt for the money given or when a significant amount of money is
being collected from students (i.e., graduation fees). All Teacher Receipt
Books must be returned to the School Treasurer at the end of the activity and of
the school year.
A Payor List should be used when the teacher is collecting for the same and
standard amount of money from all students (i.e., field trips). A Payor List is for
a specific time period when the collections are made.
Reimbursements from Chicago Board of Education (CBOE)
All schools are required to participate in the Electronic Data Interchange
(EDI) program in order to receive reimbursement from CBOE.
These reimbursements are for Board-related expenses. A Treasurer’s Receipt is
not required, as the money is automatically deposited in the school checking
account.
Money Handling
2-3
Any and all budgeted amounts that are non-payroll related can be sent via
EDI (Electronic Data Interchange). These include, but are not limited to,
reimbursed expenses, payments to local school councils, teacher instructional
supply monies, and reimbursements for purchase orders. To participate in the
EDI program, please contact Accounts Payable.
How do I record EDI Transactions at my school?
The Board will notify the school by E-mail or other methods that the deposit has
been made to the school’s bank account. The E-mail will include the funds transfer
date and list of EDI numbers that should be used to identify the budget line(s)
charged in making the transfer to the school’s account.
The school may also go to Administrative Mapper and type EDI in the upper left
hand corner of the screen and press enter or scroll lock to get a list of dates of EDI
deposits.
•
Look at FIRS (F124) or a current FI60 Report to get a description of budget
lines charged. Use the information to determine the account to be credited in
the Internal Account system. (All funds from Board Funded programs should
be recorded in the account series 2-7XXX. Write the name of the account and
number to be credited on the EDI notification printouts. The printouts of the
EDI notification, the individual budget lines, and the FI24 or FI60 are
documentation for the EDI transaction and should be maintained as such.
Record the transaction in the Internal Accounts System using the following
steps:
Click the Checkbook Icon on the Command Center window
Click the Make a Deposit box
Enter the date of the transaction in the Date Box
Press TAB and enter the total transfer amount to your checking account in
the Amount Box.
Press TAB and enter the words “Chicago Public Schools” in the Payor Box
Type “EDI” in the Memo Box
Press TAB and enter the account number and amount to be credited to
each account number in the designated fields in the Allocation Account Box
Click the Record button to complete the process
Money Handling
2-4
If a check is written in anticipation of receiving reimbursement from a budget line,
an account in 2-7XXX should be established to reflect that budget line and the
check should be charged to that account.
Schools should make an effort to work with Accounts Payable in documenting and
tracking the process. We appreciate any suggestions you submit on improving the
systems.
If you have further questions, please contact your Region Business Manager.
Concession Sales
Concession sales or a continuous sale of goods do not require a receipt for each
sale; however, the sponsor must record all collections. By tracking how much
inventory or goods are sold, the school can determine if the cash received
matches the amount of inventory sold. Sales activity is documented by comparing
expected sales to actual sales.
The school can use a Concession Sales Accounting Report to do analysis. The
sponsor must complete these for each sales activity. The money collected from
these sales must be given to the School Treasurer and a Treasurer’s Receipt
must be prepared immediately. Please refer to Chapter 5 for further information.
Ticket Events
To ensure that all money collected is deposited with the School Treasurer, the
school must use pre-numbered tickets and maintain a record of the number of
tickets sold for an event. This record indicates the expected amount of receipts.
The school can use a Ticket Accounting Report to determine whether the cash
received matches the number of tickets sold. The Treasurer’s Receipt must be
completed immediately after funds are deposited with the School Treasurer.
Please refer to Chapter 5 for further information.
Treasurer’s Receipt
All receipts must be prepared immediately after the Treasurer receives any money.
•
Receipts must be completed in numerical order. The original receipt is given to
the person depositing money and the duplicate remains in the receipt book.
•
The receipt must include the amount of money, the account name, the account
number to be credited, the source of the money, and the date.
•
The School Treasurer must sign the Treasurer’s Receipt.
•
If a mistake is made, the Treasurer’s Receipt must have VOID written on both
copies of the receipt and left in the receipt book.
Money Handling
2-5
The Treasurer’s Receipt should be pre-numbered and include the name and
address of the school.
Note: Treasurer’s Receipt Books may be ordered through the Purchasing
system.
Teacher’s Receipt
Teacher’s Receipts must be prepared for all money collected by school personnel
who have authorization from the principal. However, when group participation is
anticipated (i.e., field trips, workbooks, etc.), a Payor List of names is acceptable
in lieu of duplicate receipts. Please refer to Appendix B for a copy of the
Teacher’s Receipt.
Teacher’s Receipts must show:
•
The date the money was received.
•
The amount of money received and whether it was cash or check.
•
The purpose of the collection.
•
The person from whom the money was received.
•
The signature of the recipient on all receipts.
All receipts must be prepared in duplicate, with the original copy issued to the
person from whom the money was received and the duplicate copy kept intact in
the receipt book.
•
Receipts within the book must be issued in numerical sequence.
•
When it is necessary to void a receipt, VOID should be written across both the
face of the original and the duplicate copies of the receipt. Both copies should
be left intact in the receipt book.
What does the teacher/sponsor do with the Teacher’s Receipts Book?
Regardless of amount, all money collected must be deposited daily with the
School Treasurer. Please note: If the deposit cannot be made to the School
Treasurer on the day of collection, a back-up plan to store the funds safely
must be established. A written explanation must be prepared to the principal
describing why the money was not deposited immediately. The Teacher’s Receipt
Book or Payor List, as noted above, must be presented to the School Treasurer
when deposits are made. The teacher must receive a written receipt from the
School Treasurer for each deposit.
Money Handling
2-6
How does the School Treasurer keep track of Teacher’s Receipts?
The reverse side of the last duplicate receipt in the Teacher’s Receipt Book lists
the receipts that are being deposited with the School Treasurer, and must be
completed by the School Treasurer each time the receipt book is presented.
Receipt books must be returned to the School Treasurer after each activity and are
to be re-issued for each following event. All receipt books must be returned to the
School Treasurer at the end of the school year.
The School Treasurer must maintain a control sheet of the Teacher’s Receipt
Books. This sheet should include such headings as Date Issued, Book #, Teacher
Receiving Book, Reason for using the Book, and Date Returned.
How is a Payor List prepared?
If a Payor List is used, the list must contain the following:
•
Purpose of the collection and/or the account to be credited
•
Name of each student and amount collected
•
Total amount collected
•
Date of collection
•
Signature of the individual who collected the money
The list must be submitted to the School Treasurer at the same time the money is
submitted and a Treasurer’s Receipt must be prepared immediately.
The School Treasurer must reconcile the money deposited with the total amount
on the Payor Lists, date deposit, and the Treasurer’s Receipt number. The
School Treasurer must maintain the Payor Lists on file.
Note: Payor Lists should be used for nominal dollar amounts only.
Money Handling
2-7
Tools to receipt (record money)
The following table presents tools used to record receipts. Sample forms are
included in Appendix B in the manual.
FORM OR RECEIPT
PURPOSE
WHERE TO OBTAIN
Teacher’s Receipt
To provide individual receipts for
collections from students and to provide
students with a copy of the receipt. Best
used when students/parents desire a
receipt or when amounts collected vary.
Receipt books can be purchased
through the Purchasing system
from any authorized Board
vendor.
Payor List
To record money collected from students
by using a student listing. Best used when
amount collected is small or standard.
Please see Appendix B for a
copy of a Payor List.
Treasurer’s Receipt
To document all money collected or
received by the school. These receipts are
the primary form of control over school
funds.
Receipt books can be purchased
through the Purchasing system
from any authorized Board
vendor.
Pre-Numbered Tickets
To track the number of individuals
attending an event.
Pre-numbered tickets books can
be purchased from any office
supply store.
Concession Sales Report
To track the amount of receipts and the
amount of goods sold.
Please see Appendix B for a
copy of the Concessions Sales
Report. Photocopy the report for
repeated use.
Ticket Accounting Report
To report the collections using tickets and
explain any differences.
Please see Appendix B for a
copy of the Ticket Accounting
Report. Photocopy the report for
repeated use.
Some schools have established Student Service Centers. At these centers,
students can pay all fees and purchase certain items and tickets. A cash register
or receipt book at this center can minimize teacher and sponsor involvement with
cash and bookkeeping. Good record keeping procedures must be established
and followed to track all income. These centers should have:
• A central location
• A posted list of hours of operation
• A complete set of forms and receipts
• Accountability for all money collected
• A reconciliation of money collected, recorded, and deposited to the bank
• Security
Please contact your Region Business Manager if you are interested in
establishing a Student Service Center.
Money Handling
2-8
Deposit money in bank
How often are deposits required?
The most optimum business practice is to deposit money daily. However,
money must be deposited at a minimum of once a week. The end of the week is
an ideal time to deposit money. It is not good practice to leave money in the
school over the weekend.
All money should be deposited in the bank if the school is closed for extended
periods of time, such as holidays or vacation periods.
One principal indicated that he makes a deposit when the level of cash is
greater than “what I would be willing to replace out of my own pocket”.
The longer money remains at the school, the greater the risk of loss and the
less interest it earns.
How can money be deposited?
The principal can designate any staff member to take the money to the bank. If
you have collected a large sum of money, you should request a security guard to
accompany you to the bank. A deposit slip should be obtained from the bank to
indicate the amount deposited and date of deposit.
•
The amount of money deposited in the bank should equal the amount of
money receipted by the School Treasurer since the last bank deposit.
•
The amount of money recorded in the school Treasurer’s Receipt Book
should equal the amount of money deposited in the bank.
•
All money collected and deposited in the bank must be recorded in the Cash
Receipt Journal.
Contact the Bureau of Treasury regarding armored can pick up service. Please
note, that the armored car service does not deliver a bank deposit slip.
Money Handling
2-9
Lunch Room receipt deposits
The Board has contracted with an armored car company to pickup lunchroom
receipts. Elementary schools generally will have one scheduled pickup day
each week school is in operation, and high schools will have three scheduled
pickup days each week school is in operation. Certain schools will have one
monthly pickup on an on-call basis.
Cash Handling
The Board will provide bags and deposit slips. They may be obtained through
either the armored car company or the Bureau of Food Services. Contact the
Bureau of Food Services at 773-553-2830 for information on obtaining bags
or deposit slips. Schools are required to prepare their coin and currency as
follows:
1. Coin and currency must be tracked by each day of sale. A deposit slip
indicating cash receipts (including both coin and currency) for each
day of sale must be prepared.
2. Currency should be banded or bundled together with all bills facing the
same direction.
3. Currency must be banded or bundled in an envelope or with a rubber
band. Do not tape, paper clip, or staple currency together.
4. Envelopes may be used to separate each day of sale with a deposit
ticket for that day. Multiple envelopes can be put into a single armored
car pickup bag as long as another deposit ticket is prepared
summarizing the days of sale and amounts of the envelopes placed in
that armored car bag.
5. When rubber bands are utilized, bundled currency and coins must be
place in an armored car bag along with a complete deposit slip for that
day of sale.
6. The armored car bags may provide a compartment for the deposit slip.
If so, please place the deposit slip in that compartment.
7. Identify any armored car bags, envelopes, and deposit slips with the
school name, unit number, and sale date.
8. Personal checks from students, faculty, parents, or other Board
employees may not be accepted as payment for lunches. Checks
drawn on the school’s internal accounts may be used for schoolsponsored lunches, but this is not encouraged.
Money Handling
2-10
Change Orders
Schools may obtain change (both coin and currency) to use in their lunchroom
operation. Change orders usually must be placed by submitting a written
request on a form. The form can be obtained from the armored car company.
Change order requests will be picked up and change orders deliveries will be
made on regularly scheduled armored car pickup days. Schools pay for the
change orders at the time of delivery on a Cash On Delivery (“COD”) basis.
The Board will pay the cost of delivering the change.
Contact the Bureau of Food Services at 773-553-2830 with any additional
questions your school may have on lunchroom cash processing.
Tuition-Based Preschool Program
The Chicago Public Schools (CPS) offers a Tuition-Based After-School
program for interested elementary schools from September through June.
Schools are required to remain open until 6pm to accommodate working
parents’ schedules.
If your school participates in this program, operating procedures and tuition
payment procedures may be obtained from the Office of After School and
Community School Programs at 773-553-1499.
All tuition payments must be made by check or money order. Coupon books
will be issued to parents. Monthly payments will be sent to a designated
lockbox as noted on the coupon book. Schools will be responsible for
managing their own budgets.
Money Handling
2-11
How are NSF checks handled?
To avoid the possibility of a check being written with non-sufficient funds (NSF),
schools are encouraged not to accept personal checks from staff and parents. If a
check is returned by the bank for non-sufficient funds (NSF), every effort should be
made to collect the original amount of the deposit PLUS the NSF fee of $34.00.
If a check is accepted, immediately stamp or write on the back of the check “For
Deposit Only”.
The Chicago Public Schools must charge this fee according to Imposition of
Charges on Return Payment Instruments Board policy. Please refer to Appendix F
for additional information on this policy.
Money Handling
2-12
B.
Banking
How is a bank chosen?
Any federally insured bank or savings and loan within the City of Chicago may
be selected. This selection is at the discretion of the principal. The selected
institution must return canceled checks or provide some copied form of the
checks. Please request that your banking period conclude at the end of the
month and that your school will receive a bank statement at this time.
What about municipal depositories?
Schools are not required to deposit funds in a municipal depository. In
November 1996, the City Council voted to amend the article and section of
the Chicago Municipal Code stating that any municipal funds, including local
school funds, must be deposited in a municipal depository. The amendment
passed allowing schools to deposit funds, raised by Internal Account activity,
in neighborhood banks and savings and loan associations that may not be
designated as “municipal depositories”.
The City Council made this decision based on the following factors:
The deposit of local school funds in local banks has the advantage of
convenience and return of “good will” from the bank into which the funds are
deposited.
The Board of Education had difficulty enforcing the past regulation of
depositing all school funds, regardless of source and use of these funds,
within a municipal depository as required by the City Treasurer’s Office.
This amendment legally allows schools to continue the practice of depositing
local funds from Internal Accounts activity into neighborhood banks.
What should be considered when choosing a new bank?
•
Confirmation that the Federal Deposit Insurance Corporation (FDIC) insures
the bank.
•
Location close to your school (for more convenient deposits unless armored
car service is provided).
•
Banking fees (many banks offer no-fee checking).
•
Hours of service.
•
Investment options offered.
Money Handling
2-13
•
Other schools’ experiences with the bank.
•
Willingness to work with the school on financial service needs.
•
Monthly statement format and closing dates.
Checking Accounts
How many checking accounts can a school have?
Only one checking account in the name of the school is permitted.
If a school has more than one checking account in its name, then that is considered
an audit exception. Schools should not have more than one checking account.
The principal of each school should authorize two or more persons (in addition to
the principal) to sign checks.
If other groups associated with the school wish to establish checking accounts, the
accounts must be established without using the exact name of the school and
without using the Chicago Board of Education’s Federal Tax ID number. Please
refer to Appendix A for a copy of the CPS Tax Identification and Exemption Letter.
However, intra-school organizations such as the LSC and the bilingual committee,
should establish a sub-account within the school’s Internal Accounts. These funds
are contained in the school’s checking account.
The school should maintain an updated signature card for its checking account.
This is particularly relevant when an authorized person vacates. The signature card
should include the signatures of all persons authorized to sign school checks.
Note: Because the FDIC insures deposits up to only $100,000, if a school’s
checking account is over $100,000, investment options should be considered.
Who should sign the checks?
The principal of each school should authorize two or more persons (in addition to
the principal) to sign checks.
When ordering checks for Internal Accounts be sure to request at least two
signature lines on the check.
Money Handling
2-14
C.
Investments
Investment Accounts
When are investments appropriate?
If school funds are not needed immediately, schools may choose to invest money
in interest-bearing accounts. Investments must follow the Chicago Public Schools
Investment Policy. See Appendix F for a copy of the CPS Investment Policy.
Consult your bank for information on investments offered or talk to your Region
Business Manager.
Many investments impose a withdrawal penalty or fee if money is withdrawn prior
to the expiration date, so it is important to know exactly when the funds you are
investing will be needed. A rule of thumb is to have enough cash available to
cover two and a half months’ expenses.
What types of investments are allowed?
Schools can place their Internal Accounts money in bank accounts that earn
interest as long as these investments are consistent with the Chicago Public
Schools’ Investment Policy. Specifically, schools can consider savings accounts,
insured money market accounts, Certificates of Deposit, and Treasury Notes.
Riskier investments are prohibited.
School funds may be deposited in accounts of federally insured banks and
savings and loans provided that the investment is not in excess of the maximum
amount that is insured by the FDIC ($100,000).
Savings Account
Schools may deposit funds in an interest-bearing savings account. Such
accounts do not allow checks to be written from the account although
withdrawals can be made.
Money Handling
2-15
Insured Money Market Account
A money market account is an interest-bearing account that pays interest based
on current market conditions. Such accounts usually have a minimum balance
requirement and a limited amount of checks that may be written per month.
Should a school choose to open a money market account, the account must fall
into one of two categories:
•
A Money Market account with no check-writing privileges, strictly used as a
savings instrument.
•
The school’s primary checking account with unlimited check-writing
privileges.
A school cannot have both a checking account and a money market
account with check-writing privileges.
Certificates of Deposit
School funds may be invested in certificates of deposit (CD) of any federally
approved bank or savings and loan provided that the amount invested is not in
excess of the maximum amount insured by the FDIC ($100,000).
A CD is special type of time deposit. A CD is an investment instrument available
at financial institutions generally offering a fixed rate of return for a specified
period (such as three months, six months, one year, or longer). The depositor
agrees not to withdraw funds for the time period of the CD. If the funds are
withdrawn, a significant penalty is charged. The fixed rate of return normally
increases with the length of the term of the investment.
U.S. Treasury Obligations
Treasury bills and notes are alternatives to investment vehicles with various
maturity rates ranging from 3 months to 5 years.
What if school funds exceed the FDIC insured limit of $100,000?
Municipal Code requirements state that City funds, which include those funds
associated with the Chicago Public Schools, must be collateralized at 110% of
the account balance. FDIC insurance covers up to $100,000, which would allow
schools to maintain accounts up to $90,909 ($100,000 ÷ 110%). Any amounts
that exceed this level would need to be covered by additional collateral.
Notify your bank of the requirement to set up the collateral. The bank should
provide records to indicate the investments have been collateralized.
Money Handling
2-16
In order to maintain the safekeeping of investments, CDs and Treasury Notes
should be held with the bank. Please refer to the CPS Investment Policy in
Appendix F for additional information.
How should records of investments be maintained?
All appropriate bookkeeping entries must be made in the General Ledger and
Cash Disbursements Journal for investments that are purchased using school
checks. Schools are required to maintain bank statements to support the
investments. Please refer to Chapter 4 - Bookkeeping for additional information.
Step 1
Set up a ledger account
Establish a ledger account for all investments in Account 1-3000.
Please make the following journal entry for recording original investment: in the
cash disbursement journal:
Debit: 1-3XXX Investments $X, XXX
Credit: 1-1100 Checking Account
Step 2
$X, XXX
Record interest
Record all interest received or credited to investments or savings accounts as
interest income in Account 2-13XX.
Journal entry for recording interest received
Make a journal entry to allocate these funds to specific activity accounts by
making the following entry:
Debit: 1-1100 Checking Account
$X, XXX
Credit: 2-13XX Specific investment Income Account
$X, XXX
Record all interest received or credited to investments or savings accounts as
interest income in Account 2-13XX.
Journal entry for recording interest credited to an investment account
Make a journal entry to allocate these funds to specific activity accounts by
making the following entry:
Debit: 1-13XX Specific Investment Account $X, XXX
Credit: 2-13XX Specific Investment Income Account
$X, XXX
Money Handling
2-17
D. Loans and Accommodations from School
Internal Accounts
•
School funds may not be used for loans, credits, or personal use by
employees of the Chicago Public Schools or any other persons.
•
Loans for lunches, carfare, and similar items may be made to pupils at the
discretion of the principal.
•
Chicago Public Schools’ employees and other persons may not make
personal purchases through the school Internal Accounts to take advantage
of purchasing price or state and federal tax exemption privileges. Please refer
to Appendix A for a copy of the CPS Tax Identification and Exemption Letter.
•
Accommodation checks may not be issued for personal transactions.
•
Personal checks, postdated checks, or employee payroll checks may not be
cashed as an accommodation for anyone.
Money Handling
2-18
E.
Checklist and Chapter Review
Teacher Receipt Books or Payor Lists must be used by teachers for
collecting funds from students.
Treasurer’s Receipts must be prepared for all cash and check receipts and
used in numbered sequence within the book.
Money must be submitted to the School Treasurer on a daily basis. Any
delays should be explained on the face of the Teacher’s Receipt or Payor
List.
The School Treasurer must make deposits at least once a week (or more
frequently as required).
Concession and ticket sales reports must be completed for all concession
sales and ticket sales. The expected receipts should be reconciled to the
actual receipts.
The school may have only one checking account.
Faculty and Staff should be aware that all persons collecting money from
the students are held liable for the funds collected and are obligated to
make restitution for unaccounted funds.
Money Handling
2-19
3. Purchasing
General Guidelines
•
All purchases must meet the requirements of the funding source.
•
The principal is responsible for all expenditures of school funds.
•
The school clerk must follow through with all approved expenditures.
•
Expenditures from cash-on-hand are prohibited (except petty cash).
•
The principal must approve all purchases. Additional approvals from Board
Members must be obtained as required.
•
If the principal does not approve a purchase, the principal is not obligated to
reimburse the staff person who made the purchase. The principal approves
all purchases by signing the School Expenditure Requisition Order.
•
A detailed receipt should support all purchases.
•
All purchases should be made from General Ledger accounts with available
funds. Purchases should not be made in anticipation of future funds.
Purchasing
3-1
A.
Step 1
Purchasing Procedures
Identify vendors and get bids/quotations
The school can decide which vendors to use when spending its Internal Accounts
money.
Vendors may be selected by price, location, past relationship, or
recommendation. For some purchases, the Department of Procurement and
Contracts has identified approved vendors.
Formal bids are required by the Illinois School Code for purchases $10,000 or
greater. Informal bids (telephone or direct inquiries) can be solicited for
purchases under $10,000.
For purchases less than $10,000, the school must comply with the “3-bid
rule”. The “3-bid rule” states that three bids must be obtained in writing for
the purchase. The bids should be on the vendor’s letterhead and can be
received via facsimile. The school is not obligated to take the lowest bid.
However, for auditing purposes, the bids should be retained in a file labeled
“Bids Received.”
Exceptions to this rule include copyrighted materials and consultant
services.
For the procedures on how to prepare formal bids for purchases $10,000 or
greater, the school can contact the Bureau of Purchasing at 553-2280.
Remember to obtain multiple quotes for large purchases to ensure that the
school is receiving a reasonable price for services or goods.
Step 2
Prepare a requisition order
The teacher/sponsor should prepare the School Expenditure Requisition
Order to indicate what is to be purchased with Internal Account funds. Please
refer to Appendix A for a copy of this form.
In order to control the distribution of School Expenditure Requisition
Orders, please number the forms in numerical order. When writing a
check related to a School Expenditure Requisition Order, the
requisition number should appear in the memo field of the check.
Purchasing
3-2
Step 3
Obtain approval
All purchases from the school checking account must be PREAPPROVED by the principal and, if necessary, the LSC and Board of
Education. This allows the principal to monitor purchases and prevents
schools from obligating themselves to prohibited purchases. Approval is
documented by having the principal, LSC chairperson, or Board signature
on the expenditure requisition.
Non-biddable Items:
• Under $25,000, only PO required
• Between $25,001 - $75,000, Chief Purchasing Officer Approval
(Level Three competitive procurement process required, which
must include 3 price quotes which are secured by the User
Group)
• Between $75,001 - $250,000, Board Report Required (Level Two
competitive procurement process required, which must include 3
written proposals with price quotations which are secured by the
User Group). A scope of services is required also.
• Above $250,001, Board Report Required (Level One competitive
procurement process required, which includes an advertised
RFP/RFQ solicitation which is managed by the Department of
Procurement & Contracts)
When is Board approval required?
Board approval is required when the purchase is:
$75,001 or greater for any purchase
$75,000 or greater for any personal service contract and
consultants
Splitting purchase orders or requisitions or issuing multiple
purchase orders to avoid these limits is illegal and prohibited by the
Board.
To obtain Board approval, a Board Report must be completed. Please
refer to Appendix F for guidelines on preparing Board Reports.
When is LSC approval required?
According to the Illinois School Code, the LSC has the right to approve, in
accordance with Board rules and policies, receipts and expenditures for
Internal Accounts activity.
Purchasing
3-3
For fundraising and graduation related expenditures, include approval of
payments in minutes from LSC meetings. Fundraising by external
organizations using school facilities, LSC approval also should be
included in the minutes.
The principal or designee shall receive this approval by making
“expenditure and receipt approvals” a monthly agenda item at the LSC
meetings. The school must obtain the LSC’s approval prior to making
purchases with Internal Accounts funds over the following dollar amounts:
Elementary schools Over $1,000
High schools
Over $2,500
The LSC may increase the approval limit, but may not set a limit lower
than the above listed amounts.
Additionally, the LSC shall receive a copy of the Internal Accounts
Monthly Trial Balance (please see Appendix A). This report gives
detailed information about the cash receipts, expenditures, and inter-fund
transfers within the school’s Internal Accounts.
If the school is using an automated system such as M.Y.O.B.™ to record
its Internal Accounts activity, copies of the computer-generated reports
should be submitted in place of the Internal Accounts Monthly
Summary. LSC members should review the following reports on a
monthly basis:
•
Internal Accounts Monthly Trial Balance
•
Bank Statement
•
Trial Balance Summary
•
Reconciliation Report
LSC approval for the budget shall be obtained during the budgeting
period or planning process, or as needed, during the school year.
If your LSC desires to increase (not decrease) these Internal Account
approval levels, the school must maintain a copy of the formal approval
on file in the minutes of the LSC meeting for audit purposes. This
approval, with the proper vote, should be reflected in the minutes of the
LSC meeting.
Purchasing
3-4
Who else can be consulted for advice on purchases?
The Department of Procurements and Contracts can be consulted if more
information or further advice is needed. This department can provide
further assurance that the purchase is appropriate.
Step 4
Place order for goods
After the purchase order has been approved, the order for the goods or
services should be placed. If the cost of goods compared to the approved
purchase order is greater than a 10% increase, the price change must be
re-approved by the Principal (and LSC and Board of Education, if
applicable). For example, if a purchase order is approved for $1,000 and
the final price for the order is $1,160, the price change will have to be reapproved because the price has increased more than 10%.
The approval for the price change should be shown on the face of the
original School Expenditure Requisition Order.
Auto withdrawal from checking account should be allowed only if as part
of a one-year contract that requires periodic payments of a known dollar
amount.
Phone orders for goods or services should be limited to emergency
situations. Please note that money should be allocated to the vendor in
these situations. Send payment upon good being received or once
services have been rendered. If the order is not an emergency, please
send a check to General Accounting for the amount of the goods or
services. Those funds will be loaded to the designated budget line and
paid for by Accounts Payable.
Other than the CPS issued Procurement cards, schools are not
allowed to hold credit card or debit card accounts. Some schools may
participate in the Procurement Card Program, in which schools are
issued credit cards for the expenditure of small purchases. Outside of
this program schools are not allowed to hold a credit card in the
school’s name.
Step 5
Acknowledge delivery
Keep track of the goods or services that have been received.
Goods or services should be received prior to paying for them.
The individual receiving the goods must acknowledge the receipt using an
acknowledgment stamp or by signing and dating the invoice.
Purchasing
3-5
It is recommended that the principal assign a staff person(s) to
receive and record the bill of lading or packing slip when the goods
are delivered to the school. This person can then reconcile the
goods ordered against the goods received, allowing proper payment
to be remitted. For auditing purposes, please maintain all proofs of
delivery.
If the payment is to reimburse staff for a purchase, the staff member
receiving payment should not sign the check. For example, principals
should not sign checks made payable to themselves. Receipts for the
reimbursement should be submitted prior to release of payment.
Schools are encouraged to use the M.Y.O.B.™ check-writing feature.
Once a vendor is in the system, the system automatically prints the
address and records the transaction in the appropriate account.
Envelopes with clear windows for the vendor address can be
purchased to save typing or printing a label. Computer-printed checks
are available from office supply companies and M.Y.O.B.™.
Step 6
Write a check
The school should pay the vendor only when the following three criteria
have been met:
•
The purchase has been approved by the principal (and LSC and
Board, if necessary) and a requisition order has been issued.
•
Goods and services have been received.
•
A paid receipt or invoice is provided.
The school clerk processes all payments. Payments can be made by
manually writing a check or preparing a check using an automated checkwriting feature. In either case, two authorized people must sign the check.
To write a check using M.Y.O.B.™, please refer to Chapter 4Bookkeeping for additional information.
Step 7
Maintain records of payment
Match the purchase order to the receipt. Indicate the check number on
the requisition and write “PAID” on the receipt. File this with other paid
bills.
Purchasing
3-6
What are the responsibilities of the parties involved in a purchase?
Teacher/Sponsor
•
Identify the need for a purchase.
•
Identify a vendor to be used (obtain multiple quotes if appropriate).
•
Prepare a purchase request using School Expenditure Requisition Order.
•
Receive approval from the principal before making the purchase.
School Treasurer
•
Determine whether the sponsor has funds available.
•
Check clerical accuracy of expenditure requisition.
•
Assist sponsor in getting the principal’s approval.
•
Process invoice for payment, including possibly signing the check.
Principal
•
Approve request (School Expenditure Requisition Order) prior to
purchase. For reimbursements, the formal approval should be made prior to
the staff person making the purchase.
•
Approve any changes to the request.
•
Sign check when payment is to be made (or delegate to another staff
member) after ensuring proper support for payment exists.
Local School Council
•
Approve Internal Account purchases over $1,000 for Elementary Schools
and over $2,500 for High Schools.
Chief Financial Officer
•
Accept all gifts, grants, and donations.
Purchasing
3-7
Board of Education
B.
•
Approve purchases $75,001 or more.
•
Approve personal service contracts $75,000 or more.
Approved Expenditures
Approved expenditures are those that directly benefit the students for which the
funds were collected or are used according to the funding source’s instruction.
Funding source guidelines usually take precedence over other requirements.
Reasonable expenditures to transport money to the bank are appropriate,
such as cab fare.
Through the PAYOUT system, elementary schools and high schools can be
reimbursed up to $5,000 a month for school-related expenditures. The
PAYOUT system reimburses a school from the school’s budget line. Please
refer to the PAYOUT manual for limits on certain object codes. To receive a
copy of the PAYOUT manual, please contact the Department of Purchasing at
553-2280.
Purchasing
3-8
C.
Prohibited Expenditures
While all prohibited expenditures warrant an audit exception, some prohibited
expenditures are considered greater infractions than others. A number of
prohibited expenditures may warrant disciplinary action against the staff
member(s) who committed the violation.
Prohibited Expenditures Resulting In An Audit Exception
1.
Expenditures that are not for the benefit of the students.
2.
Expenditures for which no documentation exists (i.e., approved School
Expenditure Requisition Order) or the documentation is incomplete.
Phone orders are prohibited.
3.
Expenditures that have not been approved by the principal, LSC, CPO,
and/or Board of Education, as required.
4.
Payments to consultants or outside vendors (Oracle account 54125)
must receive online purchase orders in order to comply with Federal
Internal Revenue requirements. Examples of these expenditures
include payments to disc jockeys, mascots, and janitorial services
(part time employees are not to be paid from this budget line). Please
contact the Bureau of Purchasing for more information on these
procedures.
5.
Personal insurance protection (The Chicago Public Schools carries broad
insurance protection coverage; for information please contact the Bureau of
Risk Management at 553-3310.)
6.
Compensation to staff members and/or qualified personnel to regulate
and maintain order at school-sponsored events. With the exception of
sports officials, all payments to personnel must be processed through
the Board payroll systems.
7.
Professional books and magazines for an individual’s personal use.
8.
Expenses incurred through personal choice regarding attendance at
educational functions unless the educational functions are reimbursed
through the school budget line.
9.
Floral pieces and other remembrances for members of the Board of
Education, personnel of the Chicago Public Schools, or members of their
families. An exception to this rule is allowed if students collect funds
specifically for the remembrances of staff members, students, and/or their
family members.
Purchasing
3-9
10. Personal or non-school related travel expenses and parking fees for
students or staff except for expenses incurred to take money to the bank.
11. Membership or payment of dues for professional organizations that are a
direct benefit to an individual.
12. Luncheons, refreshments, or reservations which are not for the benefit of the
students or the school program, such as promotions and retirement, Board
of Education and Chicago Public Schools outings, staff development
activities, school socials, and other similar functions.
Prohibited Expenditures Resulting In Disciplinary Action
1. Expenditures that are contrary to the Code of Ethics of the Board of
Education. (Please refer to Appendix F for additional information.)
2. Contributions to fundraising drives or charitable organizations not authorized
by the Chicago Board of Education. (Please refer to Chapter 5 – Revenue
Generation for additional information.)
3. Gratuities or gifts which relate to one’s work assignment or for services which
have been or may be rendered by members of the Board of Education,
personnel of the Chicago Public Schools, and individuals, organizations, or
firms with whom the schools have business dealings.
4. Expenditures for the direct benefit of staff that are not taken from funds
collected by staff for staff purposes, or expenditures that do not directly
benefit the students.
Violating any item on the Prohibited Expenditures List is an audit exception.
Depending upon the materiality of any exception(s), disciplinary action may occur.
Purchasing
3-10
D.
Contracts
With the principal’s approval, the school may enter into contracts for the
purchase, lease, or rental of equipment, supplies, or services valued at less than
$10,000 for A PERIOD NOT TO EXCEED ONE YEAR. Schools may be
permitted to enter into multi-year leases pursuant to Board policy. Please refer to
Chapter 5 - Revenue Generation for specific requirements on permits and
leasing.
The following departments can be contacted if the school has questions on contracts
and leases.
3
Bureau of Treasury for current approved leasing companies and procedures at
553-2790.
3
Law Department for general terms and conditions at 553-1700.
3
Bureau of Real Estate for leases and permits to use school property at 553-2950.
3
Bureau of General Accounting for status of lease and processing payments at
553-2720.
3
Department of Procurements and Contracts for approved vendors at 553-2250.
Purchasing
3-11
E.
Board Reports
Board reports are required for the following purchases or financial dealings:
•
Student participation in a school trip outside of the border of the U.S. or for
trips using discretionary funds in an amount over $10,000 in accordance with
the school trip policy. Please refer to Appendix F for more information on the
Student Travel Policy.
•
Acceptance of any grant, gift, or donation.
•
Hiring professional services in excess of $75,000.
•
Purchasing any item or service in excess of $10,000.
Please refer to the Chicago Public Schools website,
http://www.csc.cps.k12.il.us/purchasing/board_report_templates.html for the
most current Board Report templates and forms.
Detailed information on completing the paperwork is included in Appendix F.
Purchasing
3-12
F.
School Sport Officials
The Department of Sports Administration and Facilities Management has revised
how it pays school sport officials. Starting with the 1998-99 school year, high
schools receive from the Board of Education a lump sum that covers the costs of
school sport officials for each sport's home conference games during the season
(i.e., fall, winter and spring). This lump sum is electronically transferred to the
school's checking account by the first home conference game of that season.
The school will use this money to pay school sport officials only. Security, nonconference game officials, and other sporting event personnel should be paid out
of buckets and not out of the School Sports Officials Account.
Step 1
Receive payment from the Bureau of Payroll Services
The Department of Sports Administration and Facilities Management assigns
school sport officials for all conference/league contests. Based on these
assignments, the Bureau of Payroll Services sends to the school an electronic
transfer of funds to cover the season’s sport officials for all home conference
games. This electronic transfer of funds goes directly in the school’s checking
account and will occur by the season’s first home conference game. The school
records this receipt of funds with the following journal entry:
Example:
Debit - $X, XXX Checking Account, Account 1-1100
Credit - $X, XXX School Sport Officials, Account 2-7011
To receive funds for school sport officials, each school must enroll in the EDI Electronic Data Interchange Program sponsored by the Bureau of Accounts
Payable. Please contact Accounts Payable for a copy of the EDI Application.
Step 2
Pay the school sport officials
Each school must only use this money to pay sport officials by writing a check to
the sport officials from the school’s Internal Accounts. Sport officials should not
be paid in cash.
When a check is written to the sport official, the school must record this
disbursement with the following journal entry:
Example:
Debit - $X, XXX School Sport Officials, Account 2-7011
Credit - $X, XXX Checking Account, Account 1-1100
Elementary schools do not receive reimbursement for sport officials. Elementary
schools may generate funding for school sport officials and athletic expenses
through fundraising activities and revenue generated through athletic ticket sales.
Purchasing
3-13
Step 3
Document a change in the sport official schedule
If a sport official does not attend a game, or if any other change in the sport
officials’ schedule occurs, the school should complete the School Sport
Officials Form found in Appendix A.
It is important that the School Sport Officials Form be submitted to the
Department of Sports Administration so that the department can track the
number of games worked by each sport official accurately.
Please complete and submit the School Sport Officials Form within three (3)
school days of the scheduled contest. The Department of Sports Administration
will make the appropriate changes to its sport officials’ database and, if
appropriate, credit the school’s sport officials’ account.
Step 4
Receive payment for playoff games
The Department of Sports Administration and Facilities Management will not
know the playoff schedule in advance so, consequently, funding for these games
cannot be transferred electronically at the start of the sports season.
Schools involved in playoff games should pay school sport officials from their
Internal Accounts. Once the playoff schedule is completed, the Department of
Sports Administration and Facilities Management will send the schools
reimbursement for the playoff games.
Step 5
Reconcile the school’s sports official account
All school sport officials’ accounts must be reconciled at the end of each school
year. The Department of Sports Administration and Facilities Management will
notify schools of the reconciliation process by the end of the school year.
All questions regarding school sport officials should be referred to the
Department of Sports Administration and Facilities Management.
The school sports officials’ payment process allows for the deduction of proper
payroll taxes/deductions.
If a school sport official is a non-Board employee and earns over a certain dollar
amount, then the Bureau of Accounts Payable will give this person a Form 1099
to file with the Internal Revenue Service.
If a school sport official is a Board employee, then the Bureau of Payroll Services
will adjust the employee’s earned income to reflect these earnings.
Purchasing
3-14
G. Reimbursement and Advances from School
Budget Line
R equest
fu n d s
R e c e iv e d
fu n d s
v ia
EDI
P re p a re
n e c e s s a ry
re c o n c ilia tio n
This section describes specific requirements for the most common
reimbursements from a school budget line. A separate sub-account should be
established for each funding source and purpose. These sub-accounts may
include state funds for field trips and transportation, and teacher’s instructional
supplies. These sub-accounts must be separate accounts to make tracking
reimbursements and expenses according to each activity easier.
Schools should remember to spend their Supplemental General State Aid funds
(Oracle fund 225). Please note ANY unspent money goes back to the budget
line.
The online system for receiving reimbursements and advances for expenses
from the school budget is PAYOUT. If applicable, LSC and Board approval of the
expenditures should be obtained prior to requesting these funds.
This system allows the school access to their school budget line. When a school
submits a request using the system, the funds are deducted from the budget line.
PAYOUT has lower dollar limits but allows the school faster access to cash
advances and reimbursements. Schools should retain the purchase orders,
invoices, and receipts.
Reimbursements for expenses can only be made to the school or a CPS
employee who has spent personal finances for CPS expenditures. Vendors
cannot be paid through PAYOUT. School cash advances can be made payable
only to the school. Please refer to the PAYOUT manual for specific limits and
procedures.
Checks made payable to the school are deposited into the school’s Internal
Accounts. The school’s checking account is used to pay the vendor or reimburse
employees.
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3-15
Consultants and personal services providers paid from the school’s budget line
should be issued purchase orders directly through the online iProcurement
system, not through school Internal Accounts. iProcurement requires the
school to create online requisitions, purchase orders, and receipts. Invoices
should be address to Accounts Payable. If a reimbursement is required through
iProcurement, a letter explaining the circumstances should be submitted to
Accounts Payable along with supporting paperwork and documentation. The
iProcurement reimbursement process cannot be used to avoid CPS restrictions
on the use of consultants and personal service providers.
Step 1
Request funds using PAYOUT
Using PAYOUT allows for receipt of reimbursement funds without needing to
submit supporting documentation to Accounts Payable for pre-approval. All
backup documentation such as receipts, original invoices, and canceled checks
must be retained at the school.
Reimbursement is limited to:
$500 (per person per month)
$500 per transaction ($5,000 per month)
Note: Please refer to the PAYOUT manual for the latest dollar amounts
Reimbursements cannot be used for Oracle account codes 54105, 54125,
54130, 51XXX, 52XXX (all services and salary and salary related
expenditures).
Any requests in excess of the limits outlined above must be processed through
iProcurement and supporting documentation submitted accordingly. Purchasing
monitors $500 expenditures. Units in violation of the $500 limit will be cut off.
Please refer to Appendix F for the CPS policy on reimbursement for work-related
expenses.
Cash advances are limited to:
•
Travel cash advances for students and parents only
•
Schools and area offices only
Elementary & High Schools
$2,000 per month per account code - Please refer to the PAYOUT manual for
account codes and current dollar limits.
Purchasing
3-16
When requesting money through PAYOUT, keep track of each request
and the activity account. The reimbursement you receive will be one
amount for all recent requests. Please use the School Cash Advance
Reconciliation form to record this reimbursement.
Timeliness in requesting these reimbursements will keep your accounts
from having negative balances and will make reconciliation easier.
Step 2
Prepare Treasurer’s Receipt when funds are received by check
A school Treasurer’s Receipt must be completed when the school receives a
check. The receipt should indicate the check number, in the “Received From
Section”.
Step 3
Record receipt in Ledger
The receipt should be recorded in the ledger using a pre-established account in
the Board of Education Funded Account 2-7XXX.
Step 4
Prepare year-end reconciliation
For all cash advances requested by the school, please use the School Cash
Advance Reconciliation form in Appendix A. Additionally, any remaining funds
over $10 must be sent to the Board with the reconciliation and the Check
Transmittal Form. These documents should be sent to:
Bureau of Accounting and Revenue
125 South Clark, 14th Floor
Chicago, IL 60603
GSR 125
773-553-2710
Should the remaining balance be less than $10, for audit purposes, the
requisition form should be retained at the school.
It may be easier to track the status of reimbursements if sub-accounts are
established for the specific funding source. This enables a school to monitor both
the program and required reporting.
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H.
Electronic Data Interchange - EDI
Electronic Data Interchange (EDI) is a system whereby funds are transferred
electronically (via wire transfer) directly into your school’s checking account from
CPS’ checking account. Using EDI accelerates the availability of funds by
eliminating the need for checks to be issued, thereby eliminating the waiting time
for checks to arrive and clear while also eliminating the possibility of check loss
or theft.
Use of EDI is mandatory for all schools.
Any and all budgeted amounts that are non-payroll related can be sent via EDI.
These include, but are not limited to, reimbursed expenses, payments to Local
School Councils, teacher instructional supply monies, and reimbursement for
purchase orders. To participate in the EDI program, please contact Accounts
Payable.
If you have additional questions, please contact your Area Business Manager.
I.
Web Inquiry
The CPS Web Inquiry application in Oracle provides current purchasing and
budget information. This tool also performs the following functions:
•
Account translations form Legacy combinations to Oracle and vice versa
•
Funds Lookup
•
CPS Chart of Accounts
•
PO/Invoice/Requisition Inquiries
•
Vendor Inquiries
•
CPS Location Inquiries
•
Budget Inquiries
To obtain Oracle Access for Web Inquiry Tool, go to the Oracle Applications
Website at
https://erp.csc.cps.k12.il.us:8443/OA_HTML/cps_portal_doc/index.html, or
contact the Office of Enterprise Financial Systems at 3-4101.
Please refer to Appendix D for additional information regarding the Web Inquiry
tool.
Purchasing
3-18
J.
Checklist and Chapter Review
School Expenditure Requisition Orders for all purchases must be approved
(signed) by the Principal and LSC (if applicable).
The school clerk or designee must document all expenditures (except petty
cash).
All checks must be posted to the Cash Disbursements Journal.
Detailed receipts must be maintained for all purchases.
Acknowledgment of delivery of goods or services should be indicated on the
receipt and, if applicable, receipted in the online purchasing system.
A school must not violate articles of the prohibited expenditures list.
Expenditures are for the benefit of the students.
Contracts must be approved (signed) by all necessary parties.
Purchasing
3-19
4. Bookkeeping
General Guidelines
•
The School Treasurer, as designated by the principal, is responsible for
recording all receipts, disbursements, and other transactions in the General
Ledger.
•
The following books of record are required for bookkeeping: Cash
Receipts Journal, Cash Disbursements Journal, General Journal, General
Ledger, and School Equipment and Furniture Register.
•
The school must use M.Y.O.B.™ software or another comparable automated
accounting package.
•
According to the Chart of Accounts, separate ledger accounts must be
established for school collections. Schools must use the basic format of
the Chart of Accounts as shown in Appendix A. This Chart of Accounts is
flexible and can be customized by each school by adding accounts. Accounts
already established should not be removed.
•
The school must maintain permanent paper copies of the books of
record (Cash Receipts and Disbursements Journals, General Ledger, and
General Journal). The automated packages will allow the user to print paper
copies of the required records with the exception of the school Equipment
and Furniture Register.
•
When an automated accounting system is used, a monthly back-up data
diskette or CD MUST be maintained. Every three months, a copy of the
back-up data diskette/CD along with the printed monthly reports should be
sent to the Area Office.
•
Each month the books must be reconciled to the bank statement. A copy
of the bank statement must be attached to the monthly reports and forwarded
to the Region Business Manager.
Bookkeeping
4-1
•
All school financial records must be kept at the school in a secure
location. A secure location is defined as a locked, fire-resistant cabinet or
vault. This includes electronic media such as diskettes or CDs containing the
Internal Accounts records. Original records such as invoices and receipts
must remain at the school at all times.
•
Consultants hired to work on school Internal Accounts must not remove
original documents and books of record from school grounds.
What bookkeeping procedures are required each month?
The accounting cycle is a complete sequence of procedures that are repeated
every month. There are four aspects:
Recording information about each transaction on a business form
Recording the daily transactions in a journal
Transferring data from a journal to a ledger
Preparing monthly financial reports
The monthly financial statement must be sent to the Area Office and made
available to the LSC.
What are an “Asset” and a “Liability”?
Asset
An asset is a property or property right of a school that has monetary value.
Assets are further divided into liquid assets, those that can be readily converted
to cash, and non-liquid assets, which can be defined as all assets other than
liquid assets.
Examples of liquid assets include, but are not limited to checking accounts, cash
on hand, certificates of deposits, and other investments. Examples of non-liquid
assets include, but are not limited to, assets, donated assets, and prepaid items
that cannot be readily converted to cash.
Liability
A liability is a debt or other legal obligation arising from previous transactions
that must be paid, renewed, or refunded at some future date. Examples of
liabilities include, but are not limited to, amounts owed to vendors for items
purchased for Internal Accounts purposes and amounts (i.e., graduation fees)
that are to be refunded to students.
Bookkeeping
4-2
What are a “Debit” and a “Credit”?
Debit
For an asset (i.e., cash, investments), a debit is adding value to that account.
For a liability (i.e., class and school accounts), a debit is removing value from
that account.
Credit
For an asset, a credit is removing value from that account. For a liability, a
credit is adding value to that account.
What are “books of record”?
•
A journal is a chronological listing of all transactions, such as deposits,
withdrawals, and transfers. A record must be made in the proper journal
every time cash is received or a check is written. Schools must keep a Cash
Receipts Journal and a Cash Disbursements Journal.
•
A ledger contains the account balances for all the accounts at each school.
The journals show the daily transactions for all accounts, but the ledger
shows the total changes affecting each account and the account balance in
one place. Transferring data from a journal to the ledger is referred to as
posting.
A school must keep a General Ledger. In a ledger, the debit items on the
left side of the balance sheet must always equal the credit items on the
right side of the balance sheet.
•
A trial balance is a listing that proves total debit balances equal total credit
balances in the General Ledger. This is also part of the monthly financial
statement required of all schools.
In accounting, each financial transaction is recorded as a double entry. This
means that each transaction affects at least two accounts. For example, buying a
computer means that the cash account is decreased and the asset account is
increased.
Section A of this chapter provides additional information on basic accounting
procedures and records.
Bookkeeping
4-3
A.
Accounting Basics
1.
Set up your Chart of Accounts
Schools should set up accounts based on their individual financial requirements.
This Chart of Accounts was created designating a few key accounts. This allows
the freedom to create the necessary accounts at each school and the opportunity
for an outsider to quickly understand the accounts.
The Chart of Accounts is based on five digits
•
The first digit is always 1, 2, or 3.
Use 1 for Assets, 2 for Revenue/Expenses, and 3 for Equipment
•
The second digit can be used to provide greater levels of detail, particularly in
the revenue accounts.
For example, account code 2-2000 is the general category for income
and disbursements for class activities.
•
The third digit can be used to identify a specific group, such as 2-2100 for
science.
•
The fourth and fifth digits can provide greater detail, such as 2-2110 for
biology and 2-2111 for freshman biology.
This Chart of Accounts is used with the M.Y.O.B.™ software. The Chart of
Accounts can be modified and adjusted to accommodate each school’s specific
requirements.
Your Chart of Accounts has this basic structure and can be modified to include
your specific activities and categories. The Chart of Accounts is shown in
Appendix A.
Assets (1-0000) - An asset is anything of monetary value that a school owns.
This major category includes all of the school’s resources including cash,
investments, and fixed assets. The sub-categories are included to further identify
usable types of assets.
Cash (1-1000) - This category includes all assets that are readily available to
the school and are liquid. Cash-on-hand, the school checking account, and
petty cash are all included in this category.
Bookkeeping
4-4
Investments (1-3000) - This includes all other non-liquid cash investments.
Items such as savings accounts, certificates of deposit, money market accounts,
and money market funds are investment items.
Fixed Assets (1-4000) - This category includes any item purchase that has a
useful life of at least a year that is purchased using student money and/or
school- generated money. The fair value of any donated furniture or equipment
is also included in this category.
Revenue/Expense Accounts (2-0000) - This category is used to record cash
receipts by their source (i.e., fundraising or lease income) and/or the group
entitled to use the funds (school specific accounts).
General School Accounts (2-1000) - Internal Accounts listed under this
classification are used to record not only receipts in the General Fund (2-1101)
but also other funds raised with or without student participation but intended for
student use. All expenditures recorded in this account must be for the general
benefit of all students. This account does not allow expenditures to benefit any
particular individual, group, or organization.
Investment Income (2-1300) and Lease/Permit Income (2-1200) - This
classification records income that must be allocated to a specific school account
for disbursements.
Class Accounts (2-2000) - Internal Accounts listed under this classification are
used to record the receipt and disbursement of money directly related to the
classroom such as biology, chemistry, music, etc. Please Note: This account
does not include fundraising activities.
Specific Activity Accounts (2-3000) - This classification is used to record the
receipt and disbursement of money related to extracurricular activities such as
Graduation, Student Council, ROTC, Honor Society, etc.
Fundraising - One-Time (2-4000) - Internal Accounts listed under this
classification are used to record the receipt and disbursement of money for onetime fundraising events (i.e., one-time candy sales).
Fundraising - Continuous (2-5000) - This classification is used to record the
receipt and disbursement of money for continuous sales and fundraising events
(i.e., school stores, gym uniform sales, locks, etc.).
Bookkeeping
4-5
Vending Machine (2-6000) - Internal Accounts listed under this classification are
used to record the receipt and disbursement of money for continuous vending
machine sales. This classification does not include vending machines used by
teachers only. Teacher-only vending machine money should be recorded in
2-9000 (Non-student use money). Students should be restricted from using
teacher-only vending machines.
Board of Education Funded Programs (2-7000) - Internal Accounts listed
under this classification are used to record the receipt of funds from the Board of
Education (i.e., federal and state-funded accounts). This classification also is
used to record disbursements for which a reimbursement or advance has been
requested. Please note, money collected for student and family aid should be
recorded in this classification.
This classification of accounts is the only one in which negative
balances are acceptable for a short period of time (i.e., the time it takes to
receive the reimbursement). Using the PAYOUT system, reimbursements are
generated in approximately 3-5 days.
Gifts, Grants, and Donations (2-8000) - This classification is used to record all
gifts and grants received and held by the school. All disbursements from gifts,
grants, and donations should be made directly from these accounts.
Non-Student Money (2-9000) - Internal Accounts listed under this classification
are used to record all non-student purposes (i.e., teacher’s social fund to which
teachers contribute their own money or proceeds from teacher-only vending
machines).
Non-Depreciated Equipment (3-1000) - This account is used to balance the
entry when furniture and equipment is purchased. This account should always be
the same amount as Fixed Assets (1-4000).
2.
Record cash receipts
The approved Treasurer’s Receipt format may be located in Appendix B. As
money is deposited with the Treasurer, a Treasurer’s Receipt must be prepared
immediately. The original copy is given to the remitter and the duplicate remains
in the receipt book.
The deposits indicated in the Treasurer’s Receipt Book should be recorded
in the journal at least once a week.
Bookkeeping
4-6
How is a Treasurer’s Receipt recorded?
•
A Treasurer’s Receipt is prepared immediately upon receipt of all monies by
the School Treasurer. All receipts must be completed showing the current
date, cash amount, check amount, account to receive credit, the name of the
person making the deposit, Teacher’s Receipt numbers or Payor List, and
the School Treasurer’s signature.
•
All receipts must be completed in duplicate. The original receipt is issued to
the person from whom the funds were received and the duplicate is kept
intact in the receipt book.
•
All receipts must be issued in numerical sequence.
•
When it is necessary to void a receipt, the word “VOID” should be written
in BOLD letters across the face of the original and the duplicate copy left
intact in the receipt book.
3.
Record interest income (checking/investment
accounts)
If your school receives interest income as a credit to the investment, please
make the following journal entry:
Debit: 1-3XXX Investment
$X, XXX
Credit: 2-13XX Interest Income - Investment $X, XXX
If your school receives interest income from an interest-bearing checking
account, please make the following journal entry:
Debit: 1-1100 Cash
$X, XXX
Credit: 2-1310 Interest Income - Checking
4.
$X, XXX
Record disbursements (write checks)
All disbursements using the school checking account must be recorded in
the journal at least weekly. The school must ensure that the funds are available
in the bank in the specific activity account. Accounts must not be overspent
creating negative balances unless these accounts are awaiting reimbursement
from budget lines.
Note: Per Board Policy, with the exception of sports officials, no personnel or
consultant should be paid from Internal Accounts.
Bookkeeping
4-7
What about petty cash?
For the best control and documentation of all Internal Account money, cash
transactions should be limited. When it is not practical to use checks, schools
are permitted to use petty cash accounts. Examples of petty cash usage
include postage stamps, student carfare, reimbursements for money lost in
vending machines, etc. The amount of money in this account should be limited
and based on your school’s need, but must not exceed $100 at any time. Writing
a check from the school’s Account 1-1300 to the person responsible for the petty
cash fund or to “Cash” starts petty cash funds. The money is deposited in a
safe place, such as a locked cash box or drawer.
An accounting of all money in the petty cash fund must occur. Receipts must be
submitted for cash reimbursement or a voucher must track the use of the
funds. The amount of cash on hand and the amount of receipts and vouchers
must be equal to the amount of money originally used to start the petty cash
fund.
When the amount of cash on hand is sufficient, the vouchers and receipts should
be totaled. The amount of vouchers and receipts must be equal to the amount of
the cash spent. A check should be written for the total amount of cash
spent. The vouchers and receipts should be removed from the petty cash box
and filed with the other receipts when the new cash is added. The cash on hand
must be equal to the original amount. Please refer to Appendix A for the Petty
Cash Reconciliation form.
5.
Record fixed asset purchases
What fixed asset records should the school maintain on the Equipment and
Furniture Register?
Schools must maintain an inventory of all equipment and furniture
regardless of the funding source. Permanent items costing $500 or more and
having a useful life of more than one year must be recorded. For example,
movable or fixed furniture, an instrument, copiers, video equipment, computers,
or any article costing $500 or more must be included. Please refer to Appendix F
for the CPS policy on the Maintenance and Disposal of Assets.
Bookkeeping
4-8
The fixed asset inventory can be maintained using either the School Equipment
and Furniture Register or a spreadsheet with the following information included:
•
Tag number
•
Date purchased
•
Item description
•
Funding source(s)
•
Purchase Order number
•
Item condition
•
Serial number
•
Cost
•
Model or style
•
Location in school
•
Make or vendor
•
Donated From
What should be recorded in the Internal Accounts records?
Internal Accounts money is all money in the checking account that did not come
from school’s appropriated budget.
Assets/equipment purchased with Internal Account monies or received as
a donation must be recorded in the school’s ledger for the amount of
purchase or the fair value of the assets donated. The amount recorded
should be:
•
Total purchase price paid from school Internal Accounts money
or
•
The portion of the total purchase price paid by school Internal Accounts
money if a combination of sources is used. Only the amount funded through
student money is recorded in the ledger.
or
•
The estimated fair market value of the donated item
When writing a check, transactions posted to M.Y.O.B.™ should be as follows:
Debit: 2-XXXX
X, XXX
Credit: 1-1100 Checking Account
X, XXX
Bookkeeping
4-9
Additionally, the following entry should be made to record the amount of the
purchase funded through Internal Accounts.
Debit: 1-4100 Fixed Asset or 1-4200 Donated Asset
Credit:
$X, XXX
3-1000 Non-Depreciated Fixed Asset
$X, XXX
Please Note: If a school purchases equipment using money received as an
advance or reimbursement from the school budget line, the equipment should
not be recorded in the ledger but only on the School Equipment and Furniture
Register. Detailed information on this register is included in Appendix E.
Why is a school level asset inventory important?
An asset inventory:
• Provides the necessary information to complete a police report if
equipment is stolen
• Allows the Principal or other administrators to monitor inventory in the
school
• Alerts other school personnel that assets are being monitored and they
are responsible for these items
• Provides a basis for planning future purchases
What are the criteria for removing obsolete, stolen, unneeded, or broken
equipment from the register?
For equipment that is obsolete, unneeded, or broken and is no longer needed by
the school, this procedure must be followed:
Step 1
Complete an Asset Transfer/Disposal Form. (Please refer to Appendix E or
http://www.cps.k12.il.us/AboutCPS/Departments/finance/forms/Asset_Disp
osal_Transfer_Form.xls for a copy of this form.)
Step 2
Arrange for pick-up of obsolete/broken equipment by a qualified refuse hauler.
Step 3
Keep the Asset Transfer/Disposal Form at the school.
What are the procedures if damage or loss to a building and equipment
occurs?
Step 1
The principal must report instances of damage and/or loss to the building or
equipment on the Burglary/Theft/Property Destruction Report. A copy of this
form is included in Appendix E.
Step 2
Contact the police to report a theft or criminal damage of goods.
Step 3
The principal, with the assistance of the Bureau of Safety and Security, must
investigate the damage and determine assessment of cost.
Bookkeeping
4-10
Step 4
Risk Management assists schools in replacing school content items in excess of
$2,500 following a loss. Please send a copy of the Burglary/Theft/Property
Destruction Report to:
The Bureau of Risk Management
125 S. Clark – 14th Floor
GSR 125
Fax: 773-553-3326
Step 5
Any money collected by the school from the person(s) who caused the damage
must be deposited in the school account 2-1104 - Damage to Building and
Equipment. These funds may be expended to replace or repair equipment or to
repair the building.
An asset that has been assigned to a teacher (such as a laptop) should be
handled the same as any other property that is lost or stolen. An incident report
should be completed and the report should be sent to the Bureau of Safety and
Security. This asset should have been recorded on the Asset/Equipment
Register. An Asset Transfer/Disposal Form should be completed to remove
the asset.
Creating a logging in and out system as to who is in possession of school assets and
equipment for items that are removed from school property will not only provide easier
tracking, but also allows for more accurate records. This log is especially helpful if the
items cannot be located or are broken or stolen. Additionally, the log can aid with the
scheduling of resources, equipment, and assets.
6.
Transfer between accounts (general journal entries)
Journal entries are used to make inter-account transfers, adjustments due to
posting errors, and recording of furniture and equipment on the books of record.
The principal’s approval is required to make an entry, but the approval of activity
sponsors must be obtained when transferring or making loans between activity
accounts.
The specific record keeping requirements are covered in this chapter.
Bookkeeping
4-11
7.
Avoid negative balances
Negative balances occur when an activity sponsor overspends his/her available
funds. For example: if an English teacher has $500 in an account and a
disbursement is to be made for $700 for supplemental educational materials, a
transfer of funds is required to avoid the ensuing negative balance.
Activity accounts must not be overspent. By creating a negative balance
in a liability account, the activity is spending another activity’s money.
LOANS or transfers between activity accounts are acceptable as long as
both activity sponsors have approved the transfer. However, loans should be
repaid within the same school period. Frequent loans indicate that the
allocations may not be appropriate and may require review.
Negative balances may occur in reimbursable Board of Education accounts
(2-7XXX). This may occur when a school is awaiting reimbursement from the
Board of Education. The same negative balance in Board of Education
accounts must not continue for two consecutive months.
Negative balances in non-student fund accounts represent unauthorized
subsidizing of non-student activity, and are prohibited.
How do I prevent negative balances?
If the principal requests, the School Treasurer should determine the
available balance as provided on the School Expenditure Requisition
Order. This ensures that money is in the account prior to the expenditure.
This may prevent making disbursements out of General Ledger accounts
when funds are not available.
8.
File reports monthly
The following reports are required monthly:
•
Balance sheet
•
Summary Trial Balance
•
Cash Disbursements Journal
•
Cash Receipts Journal
•
Reconciliation Report
Bookkeeping
4-12
The following reports are to be sent to the area monthly:
9.
•
Balance Sheet
•
General Journal
•
Summary Trial Balance
•
Reconciliation Report with a copy of the bank statement
Keep financial records
The school must maintain paper copies of the monthly reports. Additionally, if
using M.Y.O.B.™ or another automated system, a monthly back-up data disk/CD
(NOT ON THE HARD DISK DRIVE) must be maintained in a safe place.
A back-up data disk or CD should be sent to the area every three months with
the monthly report. The disk/CD should be labeled with the following:
•
School Name
•
Month beginning date – month ending date
•
Treasurer’s name and phone number
All financial records must be kept at the school. If a school uses an automated
accounting system, the school must print hard copies of the monthly reports and
cash journals.
The school must make back-up copies of the electronic files periodically to
ensure all data is secure. Security is provided by password access to the system,
a session back up, and the area’s offsite copy of the monthly reports.
Lack of electronic back-up files and hard copies of financial records will result in an
audit exception.
Bookkeeping
4-13
B.
Procedures using M.Y.O.B.™ (7.0)
How to Install M.Y.O.B.™
1.
Install the M.Y.O.B.™ Version 7 Program.
A. Click Start then highlight Settings.
B. Click the Control Panel Icon.
C. Click the Add/Remove Programs Icon.
D. Follow the on-screen instructions.
Note: If you are using M.Y.O.B.™ for the first time, follow the instructions in #2A.
If you are already using M.Y.O.B.™ Version 6 or lower, follow the
instructions in #2 only.
2.
Upgrade the data file used in a previous version of M.Y.O.B.™ to record Internal
Accounts in version 7.
A. Click Start then highlight Programs.
B. Highlight Bestware then click M.Y.O.B.™ Plus Upgrade.
C. Click the Yes Button.
D. Double click the C:\ Folder in the right window.
E. Highlight the M.Y.O.B.™ 6 Folder in the right window and Click the OK
Button.
F. Highlight the Internal Accounts data file in the left window and Click the
OK Button.
G. Type the name of your data file in the highlighted box as shown in the window
below the highlighted box and add the number 7 after the last character in the
name. (If your file name is MYSCHOOL.DAT. change it to
MYSCHOOL7.DAT.
H. Double click the C:\ Folder, highlight the MYOB Plus Folder. Click the OK
Button. Click the OK Button again.
I.
2A.
Click the NO Button.
Copy the data on the Chicago Public Schools Disk/CD into the M.Y.O.B.™
Plus Folder.
Bookkeeping
4-14
A. Place the Disk/CD in the appropriate drive.
B. Click the Start Button then highlight Programs.
C. Click Windows Explorer then click the Floppy Disk Icon.
D. Click the MYSCHOOL. Data Icon.
E. Click Edit then click Copy.
F. Click the M.Y.O.B.™ Plus Folder.
G. Click Edit then click Paste.
H. Click File then Close.
3.
Start M.Y.O.B.™ and open the MYSCHOOL.DATA file.
4.
Click Setup then Company Information.
5.
Type the school name and address in the boxes shown.
6.
Make a note of the fiscal year and last month of the fiscal year shown on the
screen.
7.
Change the fiscal year to the current fiscal year and change the last month of the
fiscal year to June.
A. From the Command Center click File then click Start A New Year and start a
New Fiscal Year.
B. Click the Continue Button click Continue Again.
C. Click the Month Box then click June.
Note: This screen shows the new fiscal year in process of change Do not type a
year in the box. This is the year the system is changing. The process will
not be complete until steps D and E listed below are completed.
D. Click the Continue Button. Click the Continue Button again.
E. Click the Start A New Fiscal Year Button.
F. Repeat steps A, B, C, D, and E until the proper fiscal year is processed.
8.
From the Command Center click the General Ledger Icon.
9.
Click the Chart of Accounts box then click the Print Icon.
Bookkeeping
4-15
10.
Use the Printout to renumber the accounts listed on the last report from the old
system.
11.
Add the new accounts created to complete the Chart for your school.
12.
Enter the Opening Balances into M.Y.O.B.™
M.Y.O.B.™ is a basic accounting software package for small businesses. The
Office of School Financial Services encourages all schools to use this software.
Each M.Y.O.B.™ package includes software diskettes, a user’s manual, and a
video. M.Y.O.B.™ also has an on-line help function built into the software.
The Business Managers are trained in M.Y.O.B.™ and can answer accountingrelated questions. The Office of School Financial Services also schedules handson training on a regular basis.
1.
Getting Started
How are existing balances transferred from a manual system (or other
software) to M.Y.O.B.™?
Please Note: Begin this process only after closing out the fiscal year or
reconciling with the bank at the end of the month. Some reconciling items might
be outstanding at the time of your transfer to M.Y.O.B.™. Any adjustments can
be entered into the M.Y.O.B.™ system as an adjusting journal entry.
Consolidating some accounts to conform to the new chart of accounts may also
be necessary. When modifying your Chart of Accounts, please try to
maintain the account numbers as presented. This will facilitate uniformity and
assist the Board’s software support team in responding to questions and/or
problems.
Step 1
In Command Center, place the arrow over General Ledger, then click the mouse
once.
Step 2
Select Chart of Accounts.
Step 3
Select Asset, Liability, or Equity tab to show all current accounts and categories.
Step 4
Once inside a tabbed area, choose an appropriate account for input by placing
the arrow over the account line (anywhere) and clicking the mouse twice. You
can only input amounts in accounts labeled “detail”.
Step 5
When you are in the Account Information screen, input the beginning balance of
the selected account.
Step 6
Place the arrow over “OK”, click the mouse once, and proceed to the next
account. Repeat the process until all accounts have been entered.
Bookkeeping
4-16
Step 7
In the event that an adjusting journal entry is required, press Escape to return to
the Command Center. Place the arrow over “General Journal Entry” and click the
mouse once. Once inside the General Journal, place the arrow over the first
blank “Acct #” and type 1. Then press Enter.
All of the account names and numbers will be shown. Select the proper account
by placing the arrow over it and clicking the mouse twice. The account number
and name will be inserted onto the General Journal. To complete the entry, input
the amount of the adjustment and the offsetting account by repeating the above
process. After all pertinent information has been input, place the arrow over
“Record” and click the mouse once.
2.
Update the Chart of Accounts
How is a school account created?
Step 1
In Command Center, select General Ledger by clicking on it.
Step 2
Select Chart of Accounts.
Select General Ledger
by clicking on it.
Select Chart of
Accounts.
Step 3
Select the Liability tab to show all current accounts and categories (see next
screen).
Step 4
Determine which category should include the account. Use the category
descriptions contained in this chapter. For example, if a new class account is
desired, use Account 2-2200 and create a specific account (such as Account 22235).
Step 5
Select New to open Account Information.
Bookkeeping
4-17
Select Liability tab to show all
current accounts and
categories.
Determine which category the
Account should be included in.
Select New to open Account
Information.
After all accounts have been
established, click on Close.
Step 6
Type an Account number in the category and press TAB. Example: 2-2235.
Step 7
Type a descriptive title for the account. Example: Biology Class.
Step 8
Click on OK. The new account name should show in the accounts list.
Step 9
When all new accounts have been created, click on CLOSE.
Bookkeeping
4-18
Type in an Account number
in the category and press
TAB.
Type a descriptive title for
the account.
Opening balance should
always be zero to start.
Click on OK.
How is an account edited?
Step 1
In Command Center, select General Ledger by clicking on it.
Step 2
Select Chart of Accounts.
Step 3
Select Asset or Liability tab to show all current accounts and categories.
Step 4
Select the Account you want to edit. The account is highlighted.
Step 5
Click on the arrow to show the account information.
Step 6
Click on the Account Name to edit. Example: Math
Step 7
Type in the new account name and click on OK. Example: 8th Grade Math. The
changed account name should show in the Accounts List.
Step 8
When all changed accounts have been edited, click on Close.
Bookkeeping
4-19
3.
Record income (receipts from teachers and deposits
to the bank)
How are receipts deposited from the Treasurer’s Receipt Book?
Step 1
In the Command Center, click on Make a Deposit.
In the Command Center
Click on Make a Deposit
Step 2
Switch Account from Checking Account to Cash on Hand (Cash on Hand will
be deposited into Checking when bank deposit is made.)
Step 3
In ID# field, enter the Treasurer’s Receipt number.
Step 4
Enter the date of deposit and amount from the Treasurer’s Receipt.
Step 5
Enter the name of the person making the deposit. If the person making the
deposit is new, create a card. The system will try to find the person in the list
“Select from List”. See Creating a Card.
Step 6
In the Payor field, use the scroll bar to select the person by highlighting the
person and click on Use Card.
Step 7
In the Memo field, indicate the purpose of the collection, and press TAB.
Step 8
In the Allocation Account field, press TAB to see list of available accounts or
type in the desired account number if known. Select the appropriate account to
deposit funds. If the account does not exist, click on New and see Creating a
New General Ledger Account, Steps 6-9.
Bookkeeping
4-20
Step 9
Review the entry, ensuring all information is correct and the deposit is made to
Cash on Hand.
Step 10
Record the deposit by clicking on Record. If additional deposits should be
recorded, repeat the preceding steps.
Make the deposit into cash
on hand.
Enter the date of the
deposit.
Enter the name of the
person making the
deposit.
In Memo field indicate the
purpose of the collection;
press TAB.
In the Allocation Account
field press TAB (this will
give a list of available
accounts) or type in the
desired account number, if
known.
Record deposit by clicking
on Record.
Bookkeeping
4-21
How are bank deposits recorded in the ledger?
These procedures are similar except the deposit is always from the Cash-onHand account to the Checking Account.
Step 1
In Command Center select Checking Account.
Step 2
Make sure Checking Account is selected.
Step 3
Enter the date of the bank deposit.
Step 4
Enter “SCHOOL” in the Payor section. The first time the school makes a deposit
a card must be established. This indicates that your school is making a deposit.
Step 5
In Memo field type the purpose of the collection; press TAB.
Step 6
In the Allocation Account field, type 1-1200 (Cash on Hand).
Step 7
Review the entry, making sure all information is correct and the deposit is made
to Checking Account.
Step 8
Record deposit by clicking on Record.
Make sure Checking Account
is selected.
Enter “SCHOOL” when
making bank deposit.
Enter the range of the
Treasurer’s Receipt numbers
that cover the deposit.
Enter Account #1-1200 for
deposit.
Bookkeeping
4-22
4.
Record disbursements (write checks)
Step 1
In Command Center, select Checkbook.
Step 2
In the flowchart click Write Checks. This will display the Write Checks
window.
Step 3
If the Checking Account is not indicated, click on the window and hold down
the mouse button and select Checking Account. The checking account is the
only account from which disbursements are made.
Step 4
If the school uses computer-generated checks, make sure the Handwritten
box is NOT checked. If the school handwrites checks, the box should be
checked.
Step 5
The payee can be indicated by using the card feature (Please refer to
Creating Cards in Section 9), or by entering the payee directly into the payee
window.
Step 6
If the cards are set up, type a few letters of the payee’s name or company
name until the payee’s name appears.
Click on Checkbook.
Click on Write Checks.
Bookkeeping
4-23
If the Checking Account is not
indicated, click on the window,
hold down the mouse button,
and select Checking Account.
If the school uses computergenerated checks, make sure
the “Handwritten” box is NOT
checked. If the school writes
manual checks, the box
should be checked.
The payee can be indicated by
using the card feature (see
Creating Cards), or by
entering the payee directly into
the payee window.
Type in the exact
amount of the
disbursement.
Indicate the Account
number. If you don’t
know the Account
number, press TAB.
Insert the Requisition
Number in the Memo
Field.
Record the payment by
clicking on RECORD.
When all payments
have been recorded,
the checks will print (if
the check writing
feature is used).
Step 7
In the Amount box, type the exact amount of the payment.
Step 8
Select the account for payment by clicking the first box of Allocation Account and
typing the account number. If you do not know the account number, press TAB.
This gives a listing of all available accounts. Select the appropriate account by
clicking it (highlighting it) and clicking Use Account.
Bookkeeping
4-24
Step 9
The amount as entered on the Check in Step 7 should automatically show in the
amount column.
ADVANCED: If multiple accounts will be used to fund the payment, type the
amount to be used from the first account and proceed to type the account and
amount for the other accounts.
Step 10
Record the payment by clicking on OK.
Step 11
Complete additional payments.
Step 12
When all payments have been recorded, the checks can be printed if the checkwriting feature is used.
Step 13
Click on Save when all checks have been recorded.
Bookkeeping
4-25
5.
Step 1
Transfer money between Internal Accounts
Select General Journal Entry in the Command Center.
Select General
Journal Entry.
Step 2
Indicate the date of the Journal Entry (M.Y.O.B.™ automatically defaults to the
current date).
Step 3
Indicate first the account from which you are transferring the money by either
typing in the exact account number or positioning the cursor in the Acct. #
column and pressing TAB. Once the account is selected, type in the transferred
amount.
Step 4
Indicate the account to be transferred to and the amount.
Step 5
Review the transaction for accuracy and, if correct, record the transaction.
Bookkeeping
4-26
Indicate the
current date.
Select the
account from
which the
transfer will be
made.
Select the
account to which
the transfer will
be made.
Record the
Journal Entry.
How do I know the journal entry was made correctly?
•
In Command Center, select Transaction Journal
•
Change the date range to include the date of the transactions you want to
view
•
Click the Folder Tab that describes the type of transaction
•
Use the scroll bar to locate the transaction
In the General Ledger’s Command Center, select Chart of Accounts. This
displays the current balances in all of the established accounts. By scrolling
down to the accounts that were affected by the journal entry, you should see that
the balance in the account receiving the transfer should be larger. The opposite
should be true for the account from which the transfer was made.
If the journal entry was completed incorrectly and the account, which was
supposed to decrease, has now increased, the journal entry must be canceled or
reversed. If you have not exited M.Y.O.B.™ since the transaction was posted, the
transaction can be deleted and it will never appear in the ledger. If the
transaction was completed in a previous session, the transaction must be
reversed. Please refer to Reversing Transactions or Deleting Current
Transactions in the next section.
After the incorrect entry has been reversed, the correct entry should be made
using the previous steps.
Bookkeeping
4-27
6.
Avoid Negative Balances
In M.Y.O.B.™, the balances in the ledger accounts should be reviewed
prior to writing a check to ensure sufficient funds.
Step 1
In Command Center, select General Ledger.
Step 2
Select Chart of Accounts, and the screen bellow appears.
Step 3
Select the Liability tab to display the account and the available balance.
Select Liability to
display accounts.
This is the amount
available to be spent
from the account.
7.
Create the following monthly reports
Create the following reports each month:
•
Summary Trial Balance*
•
Balance Sheet*
•
General Ledger*
•
Cash Disbursements Journal
•
Cash Receipts Journal
•
The Reconciliation Report*
* An asterisk indicates reports must be submitted to the area office by the third Monday of the month along
with a copy of the bank statement signed by the principal.
Bookkeeping
4-28
To create the reports:
•
Click on Reports
•
Click Index to Reports
•
Choose the report to be created
•
Click Filters icon
•
Enter the desired date(s)
•
Put an “x” in the zero balances box by clicking the box
•
Click Display to view the report or click Print to print the report
Select Index to
Reports.
Click the tab for
General Ledger.
Select Trial Balance
(Summary).
Optional - Click on
display to view onscreen the report.
Click on the Print
button to being the
process of printing.
Bookkeeping
4-29
How is bank reconciliation prepared using M.Y.O.B.™?
The Reconcile Accounts window looks like the check register in a checkbook. A
few of the features of the Reconcile Accounts window are shown in the following
illustration:
Enter the account you
want to reconcile in the
Account field.
Enter the balance that
appears on your bank
statement.
Enter last day of the month
(may not be date of bank
statement)
Click this column next to
all transactions that
appear on your bank
statement.
Click Date to sort the
transactions in the list
by date.
Click All to mark all
transactions in the list.
Click ID# to sort the
transactions in the list
by transaction number.
Out of balance amount
should equal zero after
all of the above steps.
Click Reconcile after marking your
cleared transactions to attempt to
match your M.Y.O.B.™ records
with your bank records.
Click None to unmark all
transactions in the list.
Bookkeeping
4-30
8.
Keep accurate, complete records
The school must maintain paper copies of the monthly reports submitted to
the area office. A back-up data disk/CD (NOT THE HARD DISK DRIVE)
should be maintained in a safe place in case of a system crash.
A back-up data disk/CD must be sent to the area every three months with the
monthly report. The disk/CD should be labeled with the following:
• School Name
• Month beginning date – month ending date
• Treasurer’s name and phone number
9.
Other bookkeeping procedures specific to M.Y.O.B.™
M.Y.O.B.™ allows the user to establish “cards” or user profiles for vendors and
depositors. These are useful when recording multiple deposits of money from
individuals or making multiple payments to vendors. Additionally, M.Y.O.B.™
allows transactions to be easily reversed if necessary.
Bookkeeping
4-31
How is a card for depositors or payees created?
Step 1
In Command Center, select Card File.
Step 2
Select Cards.
Step 3
Select New.
Step 4
Indicate the Card Type (the depositor). Teachers are “Employees” while outside
depositors such as the Board of Education or Grantors are “Customers.”
Step 5
Type the person’s last name, press TAB, then type the first name.
Step 6
Type any other optional information including mailing address for vendors. (Notes
may be useful, such as teacher’s room number, activities sponsored by the
individual, etc.)
Step 7
Click OK.
Indicate the Card Type.
For vendors include
address so checks can
be mailed if desired.
Type in the person’s
name.
Optional Information
such as Room #.
Select New.
Click OK all information is
correct
Bookkeeping
4-32
How is a transaction deleted or reversed?
Deleting transactions is necessary if a mistake is made when posting an entry to
an incorrect account or the amount entered is incorrect. The following steps must
be followed to complete these journal entries. Please note that M.Y.O.B. ™ does
not allow deleting a transaction after the program is exited. The transaction must
be reversed.
Step 1
Select Transaction Journal.
Select the
Transaction Journal
to see transactions.
Step 2
Display the period that the transaction occurred by typing the correct range of
dates.
Step 3
Select the incorrect transaction by clicking the arrow at the left of the date.
Bookkeeping
4-33
Display the
period for which
the transaction
occurred.
Select the
transaction.
Step 4
Option 1
Select the Edit menu to remove the transaction. If the transaction was entered
during the current session of M.Y.O.B.™, Delete General Journal Transaction will
appear. By selecting this, the transaction will be deleted.
Option 2
Select the Edit menu to remove the transaction. If the transaction was entered
during a previously saved session of M.Y.O.B.™, Reverse General Journal
Transaction appears. By selecting this, a reversing transaction is prepared
automatically. Click on Record to make the reversing entry.
Delete ...will be
displayed if the
transaction has
been made in the
current session.
Bookkeeping
4-34
Reverse...will
display if the
transaction was
made during a
prior session.
How do I record NSF checks?
Non Sufficient Funds (NSF) checks and bank fees are recorded in M.Y.O.B.™
using general journal entries. (Please refer to the Money Handling Section for
additional information.)
For example, assume an NSF check was written to your school for a given
activity, such as the French Club. The entry to record the receipt of that check
would be to debit “Cash on Hand” and credit the “French Club” liability account.
The purposes for recording an NSF check are: (1) to reduce the cash balance in
the checking account to its proper amount, and (2) to reduce the French Club
liability account to its proper amount. This allows the school clerk to monitor the
spending of the teacher in charge of the French Club and preventing
overspending.
Step 1
At the Command Center, select the General Ledger icon with your mouse and
click it once. Then select the General Journal Entry icon to gain access.
Step 2
The date defaults to the current date. Change the date to reflect the date of
notification or the last date in the month of notification.
Step 3
The next item input is the Memo, or reason you are making the journal entry.
Assume someone other than you will review this transaction. Enter a concise and
precise description making sure you include the payor’s name. Then press
ENTER.
Bookkeeping
4-35
Step 4
You are ready to input the general journal entry. Your cursor should rest at the
box labeled “Acct #.” Press the TAB key to display a listing of accounts. Use the
example and select “French Club” liability account and press ENTER.
Step 5
The cursor should rest on the debit column, awaiting an amount for input. Input
the amount of the NSF check and press ENTER. Your cursor should rest at the
box labeled “Acct #.” Press the TAB key to display a listing of accounts and
select Checking Account; press ENTER. The cursor should rest on the debit
column. Use your mouse and place the arrow on the corresponding credit
column and press ENTER. The amount will automatically appear.
Step 6
To record the transaction, use your mouse and place the arrow on the RECORD
icon on the bottom right hand side of the page; click it once.
For other returned checks, follow the above procedure.
How do I record bank charges?
Banks charge fees for services. To properly reflect these fees, a general journal
entry must be prepared.
Using the same procedures as above in recording NSF checks, select the
General Fund account being debited and the Checking Account being
credited.
Debit 2-1101 (General Account)
Credit 1-1100 (Checking Account)
How do I remove a stale check (check outstanding over six months)?
These steps should be performed after reconciling the Checking Account for the
most recent month, but before final reports have been printed. A separate
journal entry has to be made for each stale-date check.
•
From the Command Center window, click the General Ledger icon
•
Click the General Journal Entry button
•
Change the date to the last day of the month being reported
•
Enter the check number and the words “Back to Cash” in the Memo section
•
Debit the Checking Account (1-1100) for the amount of the check
•
Credit the account charged at the time the check was issued or credit the
Bookkeeping
4-36
General Fund Account (2-1101) for the amount of the check
•
Click Record
•
Repeat the steps above until you have entered all of your stale-dated checks
•
From the Command Center window, click the Checkbook icon
•
Click Reconcile Accounts
•
Enter 1-11000 in the Account field
•
Change the Bank Statement Date to the last day of the month of the
reconciliation
•
Enter the ending Bank Statement balance in the New Statement Balance box
and press Enter
•
Click on each stale-dated check
•
Click on each corresponding Journal Entry Deposit amount
•
The Out of Balance amount should equal zero
•
If so, click Reconcile
•
Click Reconcile again
Bookkeeping
4-37
C.
Other Bookkeeping Methods
The Bureau of General Accounting fully supports the use of M.Y.O.B.™ in the
Chicago Public Schools. It is required by all CPS schools to use electronic
accounting software. If a school uses a different software program, the school
must maintain paper copies of the books of record as indicated in the manual
bookkeeping section.
D.
Accounting/Bookkeeping Service
If the school Internal Accounts records are incomplete and/or not up to date, the
school may use an accountant or bookkeeping service to prepare the books and
records.
E.
Auditing
Each school may elect to have its Internal Accounts records audited by a
Certified Public Accounting or Audit Management firm.
Bookkeeping
4-38
F.
Checklist and Chapter Review
A clear connection must be established between the Treasurer’s
Receipts and the Teacher Receipt, Payor List, or other receipting
method.
All Treasurers’ Receipts must be recorded in the ledger.
All checks written must be recorded in the ledger.
The standard Chart of Accounts must be used to create individual school
accounts.
All assets purchased with student money must be recorded in the ledger.
The books must be reconciled to the most recent bank statement on a
monthly basis.
The required reports must be submitted to the area office (with a copy
maintained at the school) for the most recently completed month.
Electronic media back-up files and system access security must be kept
in a secured place.
If Internal Accounts records are incomplete or out of date, then a school
may elect to utilize an accountant or bookkeeping service for assistance.
Schools may elect to have an independent audit of Internal Accounts
records.
Bookkeeping
4-39
5. Revenue Generation
General Guidelines
•
Every fundraising event must have a completed Local School
Fundraising Proposal and a Local School Fundraising Accounting
Report.
•
The Bureau of Real Estate is available to help schools realize
opportunities to lease their property.
•
A Ticket Accounting Report must be prepared for all school events
where tickets are sold.
•
Schools must retain the proceeds from sales of school pictures in their
Internal Accounts until the photographer delivers the product and properly
invoices the school.
•
Any non-governmental grant, gift, or donation must be reported to the
Chief Financial Officer.
•
A Perpetual Inventory Card and a Concession Sales Accounting
Report must be maintained for all continuous sales.
Schools are encouraged to find new sources of revenue. School funds should
be used during the period the funds are raised and for the purpose intended.
Excessive fund balances at the end of the school year indicate that more
funds were generated than were needed by the school. School administration
should develop a written plan, to be approved by the LSC, for the use of
these additional funds.
The plan should include the following items:
•
Source of the funds
•
Proposed use of the funds such as the purchase of new band uniforms,
cabling for networks, computers, etc.
•
General estimate of the cost for which the funds are being raised
•
Time frame for the use of the funds
Revenue Generation
5-1
A.
Permit Fees and Leasing School Property
Permits are required for the ONE-TIME OR OCCASIONAL use of the school
building or the school grounds by a non-Board of Education entity. These permits
must be obtained prior to the scheduled activity. Continuous, repetitive use of the
building or grounds (including all Chicago Park District programs) requires Board
approval and must be documented by a license agreement, a lease
agreement, or an inter-agency agreement.
The principal and the LSC, in accordance with the procedures and requirements
specified on the back of the permit, approve permit applications. See Appendix B
for an example of the School Usage Permit.
When collecting permit fees, the following procedures must be followed.
Step 1
Obtain approval
The school must obtain the following documents or approvals to lease a portion
of the school building or school grounds:
•
A completed School Usage Permit. The back of the permit indicates the
lease requirements.
•
A copy of the licensee’s insurance certificate. The licensee must agree to
provide (at its own expense) a standard commercial general liability
insurance policy naming as an additional insured “The Board of Education of
the City of Chicago, a body politic and corporate; and its employees”. The
minimum amount of the insurance policy must not be less than $1,000,000,
and the minimum insurance requirement is $3,000,000 if the lease is subject
to special requirements.
Special requirements:
•
Swimming pool usage - In addition to issuing a School Usage Permit, the
school must obtain specific approvals from the Board of Education (in the
form of a Board Report) and the Chief Operating Officer.
•
Carnival operations - The carnival operator must obtain a license from the
City of Chicago, Department of Revenue to operate a carnival or special
event. The applicant must provide to the Board’s Bureau of Real Estate
Management their application for a School Usage Permit and/or License.
This includes a copy of the license documenting the operator’s compliance
with all City of Chicago ordinances.
•
In cases where school property is leased for conducting any type of
amusement for the lessee’s organization or where the proceeds do not
directly benefit the school’s students, the amusement may be taxable under
the current City of Chicago’s Amusement Tax Ordinance and the current
Cook County’s Amusement Tax. The current tax rate for the City’s tax is 7%
and the current rate for the County’s tax is 3%, for a combined rate of 10%.
Be aware that the ultimate responsibility for both taxes rests with the lessor of
the property, (i.e., the school). For more information, contact the Chicago
Department of Revenue at 312-744-6146 and the Cook County Department
of Revenue at 312-603-3723.
Revenue Generation
5-2
•
Copies of the School Usage Permit, insurance certificate, and special
requirements must be sent to the Department of Operations, Bureau of
Real Estate.
Not receiving the proper permit and insurance coverage for leasing
purposes is considered an audit finding.
Step 2
Receive Revenues from Permits
The School Treasurer should receipt all permit revenues using the Treasurer’s
Receipt Book. Permit income must be recorded in General Ledger Account 212XX. The revenue may be allocated to activity accounts at the school’s
discretion.
Step 3
Staff the event as necessary
When a school leases its facilities to an outside organization, the unit
administrator must ensure that the building is adequately staffed to ensure the
safety of both staff and visitors.
Staffing for the event may be provided as follows:
•
Chicago Public Schools’ employees
•
Contractors providing privatized services to the school
•
Parents and community members
A. Chicago Public School Employees
The unit administrator has two methods of staffing the building using Chicago
Public School personnel:
• Adjust employees’ regular work schedules to meet the school’s needs without
incurring additional overtime expense.
• Maintain employees’ regular work schedules and provide an overtime
position to compensate employees for additional hours worked.
If the school decides to open a position to cover the cost of salaries of
employees who work these special events, the school must do the
following:
Using Oracle Position Control, open an overtime or extended day
bucket position, prepare a position-opening request (“Request for
Position”). For an overtime bucket position, please contact the Office
of Management and Budget, 553-2560.
Prepare a school check to the Board for the anticipated amount of
overtime paid to staff.
Submit to the Bureau of Revenue the following documents for
processing:
Revenue Generation
5-3
A copy of the “Request for Position” request
A school check to cover anticipated personnel expenditures
A check transmittal form indicating the budget lines to be loaded
Any additional documentation indicating source of funds, reason
for request, and other pertinent information
Starting in early FY2005, schools will be able to add money to
Fund 280/124 by completing the Special Income Fund
transaction form via Oracle. Details of this new process will be
provided in the future.
Once the position is opened, it may be used for future events in that
fiscal year. If additional funding is required, the school has to remit a
check to the Bureau of Accounting cover the amount of additional
overtime.
Special Note: Standard Cost Accounting methods should be used to
calculate what fees are charged. Schools can charge users for indirect
costs such as overhead, heating, lights, etc. Other actual costs may be
charged such as staff salaries when leasing school property to outside
groups.
B.
Contractors Providing Privatized Services to the School
When a private company handles the school’s custodial functions, the normal
working hours are the responsibility of the Chicago Public Schools. When
additional hours are needed to cover an event, such as auditorium rental, the
additional hours worked by the private company’s employees are the
responsibility of the school. The additional hours must be paid from rental
fees collected from the event.
The school should pay the private company from the Internal Accounts only
when the company has provided to the school an original invoice detailing all
charges for the event.
A common misunderstanding: paying an individual who provides a service
versus a company with an employee who provides the service. Please ensure
that you pay the correct party from Internal Accounts.
C.
Parents, Community Members, and Students Being Paid Through
Miscellaneous Payroll
The school administrator may choose to use parents and other community
members to work an event. The administrator must adhere to all current
guidelines pertaining to payroll standards.
Effective as of the summer of 2005, all student stipends will be paid through an
electronic card (E-Card) and not via paychecks. As CPS moves towards a
paperless environment, transferring all student stipends to an E-card is part of
Revenue Generation
5-4
the process. The E-card allows money to be loaded automatically to the card
and accessed much like an ATM debit card. A physical check is not printed and
distributed. Other benefits of the card include quicker payment reconciliation
and correction methods. Misplaced cards can be replaced by contacting the
Payroll Services. Program supervisors should be approve and retain all student
timesheets.
Effective with 1998 summer programs, the Bureau of Payroll Services pays all
non-board/non-student employees through the miscellaneous payroll system. All
questions regarding miscellaneous payroll should be directed to the Bureau of
Payroll Services at 553-2660.
For additional payroll information, please visit the Payroll links:
Step 4
•
Budget Handbook for Schools
(http://www.csc.cps.k12.il.us/omb/BudgetHandbook/) and Payroll guidelines
(http://www.csc.cps.k12.il.us/omb/BudgetHandbook/revD/payroll.pdf)
•
Beginning of School Year Resource Manual
(http://cps.k12.il.us/programs/bosy/index.html) and its Payroll Services
section (http://cps.k12.il.us/programs/bosy/pdf/sect5.pdf)
•
Planning Your Summer Program (http://cps.k12.il.us/programs/sp/index.html)
and its Payroll Processing section
(http://cps.k12.il.us/programs/sp/pdf/payroll.pdf)
Reimburse the Board for the increased cost associated with the use
of the building and/or grounds.
•
Send to the Bureau of General Accounting permit fees used for salaries and
stipends, with any remaining fees retained in the Internal Accounts.
•
Make a school check payable to the “Board of Education of the City of
Chicago” and submit the check to the Bureau of Revenue to cover the
personnel costs associated with the event.
•
Use the Check Transmittal Form as shown in Appendix B and prepare a
memo indicating the amount to cover each position number or budget
classification used.
•
Indicate the position number and/or budget classification on the face of the
check to ensure the proper position is funded.
•
Monitor the overtime position to ensure that the expenditures taken from it do
not exceed the funding provided for the position. This is the unit
administrator’s responsibility.
•
Reimburse the Board of Education for any excess expenditure from the
overtime position.
Not paying the Board of Education for additional staffing is considered
an audit exception.
Revenue Generation
5-5
Lease Income (recurring)
All income generated from the lease of school property should be deposited in
the school Internal Accounts. School property consists of the school grounds and
any building partially or primarily located on the land.
In January 1996, the Board of Education amended the policy on lease
income empowering the school principal and LSC to spend lease income
at their discretion as long as the income benefits the school’s facility
and/or educational program. This discretionary expenditure should occur
after the school has designated any lease income towards the maintenance
of the leasing property.
Step 1
Identify an opportunity to lease school property
Step 2
Contact the Bureau of Real Estate at 553-2950
The Bureau can provide assistance with proposal development, contract
negotiations and Board Report requirements. The Bureau of Real Estate
prepares the Board Report and a contract with the assistance of the Law
Department.
Step 3
Obtain Board approval
The Board President signs the final contract with the lessee.
Step 4
Receive lease income from Lessee
Lease income is sent directly to the school from the lessee.
Deposit all lease income into the school’s Internal Accounts and record the
revenue in the appropriate General Ledger Account. The school can decide how
to use the funds within appropriate guidelines.
If the lease activity requires school personnel, follow the steps outlined for
additional staffing.
Step 5
Send Verification of Receipt of Revenue to the Bureau of Real Estate.
After the school receives rental income for the month, within three (3) business
days remit to the current real estate management company a Receipt
Memorandum acknowledging receipt of rental income (Please refer to Appendix
E for a copy of the Receipt Memorandum.)
Revenue Generation
5-6
B.
Student Activity Fees
O b ta in
a p p ro v a l
fo r
s c h e d u le
N o tify
p a re n ts
of
fe e s
C o lle c t
fe e s
fro m
s tu d e n ts
U s e fe e s
fo r
in d ic a te d
p u rp o s
Schools may collect activity fees from students to cover educational costs
exceeding their school-based budget. Activity fees for required events may be
waived for students who qualify and completed the Student Fee Waiver Form
(Please refer to Appendix A for a copy of the Student Fee Waiver Form).
The school should form a committee to determine the amount of the fees and the
dates of collection. The composition of the committee should be based on the
nature of the student fees (i.e., activity fees, graduation fees, club fees, etc.).
When appropriate, the committee should include representatives from the LSC,
parents, teachers and the Student Council. The school principal should always
approve the suggested fees.
For example, in the case of graduation fees, a committee should be formed
with representatives from the parents of the graduating students, the
teachers from the graduating class, and the LSC. The principal is
responsible for approving the graduation fees.
Step 1
Obtain approval for the fee schedule
The principal should approve the fee schedule. The fee schedule should be sent
to the Area Instructional Officer. Please refer to Appendix F for the policies
pertaining to the establishment of fees and fee waivers.
Step 2
Notify parents of fees
The fee schedule should be sent to parents well in advance of collecting the
fees. General fees and their proposed uses should be indicated and itemized in
the notification.
Step 3
Collect fees from students
Teacher Receipts or Payor Lists should be used to receipt money from
students.
Specific fees collected from students must be deposited into the class or activity
account for which the fee was collected.
Any general fees collected must be allocated and deposited into a specific class
or activity account, Account 2-2XXX or 2-3XXX (i.e. English, Science,
graduation, etc.) in accordance with the student fee schedule approved by the
principal.
Revenue Generation
5-7
Step 4
Use fees for indicated purposes
Collected fees must be used for indicated purposes. Parents should be notified if
a dramatic change in the proposed usage of fees is to occur.
Many schools collect their entire school activity fee at the beginning of the
school year instead of collecting smaller fees throughout the year. A onetime collection process can make it easier on the students, teachers, and
school clerk. Below is a list of expenses that can be incorporated into a onetime student activity fee. (Please note, each fee must have its own account.)
•
Open Houses
•
Registration Fees
•
Summer Bulletins
•
Student Handbooks/Folders
•
Student Council Fees
•
Attendance Awards
•
College/Career Days
•
Yearbooks
•
School Newspapers
Revenue Generation
5-8
C.
Entertainment and Athletic Fees
All admittance tickets and cash receipts received from ticket sales can be
accounted for by using the Ticket Accounting Report. (Please refer to
Appendix B for a copy of the Ticket Accounting Report.)
Use the following procedures when conducting ticket sales for an
entertainment/athletic event.
Obtain
Approval
Step 1
Prepare for
Conduct
Prepare
Ticket
Ticket Sale
Acct. Report
Pay
Vendor for
Event
Obtain the Principal’s approval
The faculty/sponsor of the event must complete a Local School Fundraising
Proposal and obtain the principal’s, LSC’s and Area Instructional Officer’s (AIO)
signatures as an indication of approval. (Please refer to Appendix C for a copy of
the Local School Fundraising Proposal.)
If an outside performer is to be used, the faculty/sponsor is responsible for
completing a School Expenditure Requisition Order form as well. (Please refer
to Chapter 3 for purchasing instructions.)
Step 2
Step 3
Prepare for ticket sale
•
Tickets for all functions must be pre-numbered. (Please refer to Chapter 2
regarding where you can obtain pre-numbered tickets.)
•
Each group of tickets is provided to the teacher/sponsor in a numbered
sequence.
•
All tickets purchased from an outside firm or printed by the school must be
delivered to the School Treasurer.
Conduct ticket sale
•
The School Treasurer is responsible for maintaining physical control of all
admittance tickets. This responsibility can be delegated to an administrator
as long as the duties are not assigned to individuals or departments that
utilize the tickets. It is a good practice to have different people collecting the
money, selling the tickets, and reconciling the account.
•
The teacher/sponsor(s) is responsible for maintaining records on how much
money is collected for the event. This can be done by using pre-numbered
tickets:
Example: 100 tickets were sold at an event. Each ticket cost $1.00;
therefore, $100.00 must be submitted to the School Treasurer.
•
In the event of a discrepancies or revenue shortfalls, the teacher/sponsor is
responsible for making up any difference.
Revenue Generation
5-9
Step 4
Step 5
Prepare Ticket Accounting Report
•
The teacher/sponsor prepares the Ticket Accounting Report for each
activity.
•
The report and any unsold tickets must be delivered to the School Treasurer
immediately after the event. Prepare a statement explaining lost and
unaccounted for tickets. Keep a copy for your records.
•
The School Treasurer is responsible for verifying the information contained
on the Ticket Accounting Report, reviewing it with the principal and
securing his/her signature for approval. Any discrepancies/shortages must be
clarified and/or explained in writing and attached to the report prior to its
approval.
•
The School Treasurer must retain on file the original copy of the Ticket
Accounting Report as well as a copy of the Local School Fundraising
Proposal with the unsold tickets. A duplicate copy can be returned to the
teacher/sponsor.
Pay outside vendor for event (if applicable)
•
Write a check to the outside vendor.
Revenue Generation
5-10
D. Graduation
The key to planning a successful graduation is to begin with a solid budget and
stick to it. Ensure that enough is collected to cover all expenses. Any overexpense (optional or mandatory) will be an audit exception.
•
Fees for graduation should be established well in advance of graduation day.
•
Mandatory graduation fees must cover only those items required for
participation in the actual graduation day ceremony.
•
Due to student fee waivers, separate the mandatory and optional graduation
activities. Students are entitled to receive waivers for the mandatory fees but
are still responsible for optional fees.
Mandatory graduation fees could include items such as cap, gown, ribbon,
auditorium, printing, music, flowers, and speaker fees.
All other activities connected with graduation shall be priced separately and
made OPTIONAL to the student. These optional fees may include class gift,
class luncheon, yearbook, or other special activities.
Remember: Do Not Overspend.
Step 1
Plan the graduation ceremonies
A committee should establish graduation ceremonies and graduation fees. The
committee should be formed with representatives of the Student Council, parents
of the graduating students, teachers of the graduating class, the school principal,
and the LSC.
All uses of fees should be specifically identified. Collection for the activities
should not be more than the expected costs of the graduation activities.
Consider charging more to cover students that may not graduate to ensure
total mandatory costs are covered.
The basis for the current year’s plan may be the prior year’s ceremony
(assuming the ceremony was a success in terms of budgeting, planning,
and delivery).
Step 2
Obtain approval for ceremony and other events
As expenditures may exceed approved payment limits, obtain Principal and LSC
approval for the ceremony.
Revenue Generation
5-11
If the graduation ceremony is planned for a non-CPS facility, determine if the
facility will require a Certificate of Insurance and/or written agreement from the
Board.
Requests for Certificates of Insurance should be directed to Risk Management at
773-553-3310 as soon as the agreement is approved and no later than 14 days
prior to the event.
Written agreements should be sent to the CPS Legal Department for review.
Step 3
Arrange for vendors to supply services and supplies
The school should contact the vendors that have provided acceptable services in
years past. Other schools can be contacted to suggest other vendors.
Step 4
Prepare graduation announcement letter and send to parents
The graduation letter should show how the fee(s) would be used, including the
explanation and breakdown of mandatory and optional fees.
Step 5
Collect graduation fees from students
Receipt money using a Teacher’s Receipt Book or Payor List. Because the
graduation fee is usually a larger amount than normal student collections,
parents are more likely to desire a receipt for collections. This requires using a
Teacher Receipt book.
Step 6
Record collections in general ledger accounts
The standard chart of accounts uses:
Account 2-3110 Graduation Fees - Mandatory
Account 2-3120 Graduation Fees - Optional
Step 7
Pay for events
All expenditures must meet the expenditure guidelines by having a completed
School Expenditure Requisition Order and original invoices. All events should
be paid from the graduation ledger accounts (assuming adequate funds are
available).
Revenue Generation
5-12
E.
Photographs
School picture taking is an annual tradition many schools use as an opportunity
to raise funds. Typically, the school and the photographer agree on the
photographer’s costs, with the school receiving a percentage of the gross sales.
Because school picture taking is a fundraising activity, fees collected for school
pictures should be recorded in the school’s Internal Accounts. This requires
school personnel to accompany the photographer’s staff in collecting
photography fees in order to ensure that the amount of fees collected is recorded
accurately. The school is responsible for depositing the fees collected in the
school’s Internal Accounts. The school must retain the fees collected until the
product (i.e., the school pictures) is delivered to the students and a proper
invoice is submitted.
Once the product has been received, the school retains its percentage of the
sales revenue and remits to the photographers the proper percentage of the fees
collected.
The school should not submit the total amount of fees collected to the
photographer before the product is delivered. Doing so gives the school little
recourse for guaranteeing the product is delivered in full in a timely manner.
All schools must adhere to the following guidelines when taking school pictures.
The school is responsible for the money collected if the photographer fails to
produce the pictures.
The most important thing to do when conducting a photography sale is to
be comfortable with the expenses paid to the photographer. Obtaining
detailed invoices from the photographer and comparing that to the
anticipated participation by the students will assist analysis.
Schools may want to competitively bid photography services each year to
ensure competitive prices.
Revenue Generation
5-13
All Photographers
Sign
Contract
with
Photographer
Step 1
Deposit
Payments in
School Internal
Accounts
Obtain
Product from
Vendor
Make payment
to Vendor
Obtain written bid/proposals from photographers
Obtain a minimum of three (3) written Bid/Proposals from photographers.
Step 2
Award the contract and obtain a signed contract
This contract should indicate the division of profits between the school and
photographer and any other specific requirements identified by the school. A
contract may not be entered into for more than one year.
Specifically, the contract should include the following:
Step 3
•
A detailed description of the fees being charged by the photographer
•
The percentage of sales the school will receive (if the school is using picture
sales as a fundraising activity)
•
Wording that states the school will retain the collection of student fees in its
account until the photographer has delivered the product
Use a Payor List to record collections from students
A copy of a Payor List can be found in Appendix B.
Step 4
Deposit collections in the school Internal Accounts
The school should not remit any portion of the collections to the photographer
until the pictures are delivered and a proper invoice is submitted.
The school must establish a sub-account in the Internal Accounts for the
photography collections.
Step 5
Pay photographer
Payment to the photographer should be made based only from a detailed invoice
provided by the photographer.
The school should handle any dispute with the photographer. If disputes
cannot be resolved, please contact the Bureau of Purchasing at 553-2280.
Revenue Generation
5-14
F.
Grants, Gifts, and Donations
The Amended Board Rule
To ensure the continued uniform implementation and management of all schoolbased grants, gifts, or donations from the governmental and non-governmental
agencies in accord with the Illinois School Code, the following Policy for the
Acceptance of Grants, Gifts, and Donations has been amended to streamline the
reporting process.
Effective, November 1, 2004, the Board adopted a new grant acceptance policy
(403.3). The amendment to the Board Rules has given the responsibility of
accepting all grants, gifts and donations to the Office of the Chief Financial
Officer on behalf of the Board. Benefits of this change include the ability to
process documents as they are received and shortened timelines for acceptance.
Additionally, the CFO prepares monthly informational reports for the Board listing
these grants, gifts, or donations noting reasons for refunds or returns. Any
school, area, or central office unit that receives a grant, gift, or donation of funds
or equipment must obtain approval from the CFO prior to using the funds.
Please refer to Appendix F for Copy of CPS Grant Acceptance Policy.
The Purpose
This policy shall establish an acceptance process for all grants, gifts, and
donations received by any central office, area, or school unit. Establishing the
administrative requirements in this policy ensures uniform implementation and
management of all grants, gifts, and donations, and also ensures that the Board
meets its responsibilities as the grant, gift, or donation recipient.
The Policy for the Acceptance of Grants, Gifts, and Donations
All CPS units must request approval to accept all grants, gifts, and donations of
any amount by utilizing the Oracle web based application. Not only does this
process allow the user to view the requests statuses, but also it provides E-mail
notification of grant acceptance status.
Failure to adhere to the requirements could result in violation of Board
Policy and prevent access to the funds.
Revenue Generation
5-15
The principal of the local school is responsible for the reporting, implementation,
and management of all school-based grants, gifts, and donations from nongovernmental agencies. When a local school receives a grant, gift, or donation
the principal is responsible to report this information to the Chief Financial Officer
through the grant acceptance process. In addition to ensure adherence with all
CPS policies, the principal is also responsible for expending the funds in
accordance with the terms, budget, and liquidation requirements of the grant.
Please refer to Appendix B or the following website for the Grants, Gifts, and
Donations Access Request Form:
http://www.cps.k12.il.us/AboutCPS/Departments/finance/Grant_Gift_Donation_A
pplication_Request_Form.pdf
Benefits of the Process
•
An E-mail is sent automatically with a Request Number to acknowledge entry
once the application is completed in Oracle.
•
CFO reviews all required documents and then accepts or rejects request.
•
Another E-mail is automatically sent to the requester at the time the grant,
gift, or donation is accepted. When the CFO enters the status of the
Acceptance in the system this E-mail also is sent to the Offices of
Management and Budget and External Resources.
•
The receiving unit should confirm that OMB has an agency approved budget
and has enough information to correctly load the funds.
•
A third automatic E-mail is sent to the requester, Finance, and External
Resources when OMB enters the lines have been budgeted. The receiving
unit then reviews their budget lines that have been loaded and begins
implementation.
For complete instructions on how to enter information into Oracle, please refer to
the website link for Grants, Gifts, and Donation User Document at
http://www.cps.k12.il.us/AboutCPS/Departments/finance/Grants_Gifts_Donations
_User_Document.pdf
Fiscal Responsibility
Governmental grants are administered through the Central Office. The grant
administrator is responsible for ensuring all activities and encumbrances are
completed by the end-date of the grant. Delivery of goods and services must
occur before the end-date of the grant. Payment for all goods and services
encumbered for the grant must be paid within the timeframe established by the
funding agency. The acceptance of a grant, gift, or donation does not supersede
any federal, state, local, or CPS policies and regulations during the
implementation of the grant.
Fund 280
The procedures for the loading of Fund 280 (Legacy)/124 (Oracle) Special
Income Funds has not changed. For a complete description, procedures for use
of the funds, and forms please see the website link.
http://cps.k12.il.us/AboutCPS/Departments/management/Fund_280.pdf
Revenue Generation
5-16
G. Single Fundraising Activities
The purpose of school fundraising is to generate non-budgeted funds for
extracurricular activities. These activities must enhance the school’s ability to
provide a well-rounded learning environment for the students. With the
principal’s and Area Instructional Officer’s permission, policy allows all formal
groups consisting of students and a faculty sponsor to conduct fundraising
activities.
A policy adopted in February 1997 by the Board of Education states that,
“…within certain boundaries, Local School Councils (LSC’s) have the
authority to raise funds at the school which they serve…” for LSC incidental
operating and legitimate educational-related expenses. Please refer to Appendix
F for the CPS policy on Local School Council Fundraising.
The following procedures provide clear instruction on how funds collected during
fundraising activities must be handled and recorded to ensure that the funds
solicited from the students and school personnel are not abused or
misrepresented.
Furthermore, these procedures shall be followed for all sales of tangible property
conducted by the schools, groups raising money for the schools, or groups
raising funds using the school name and involving school personnel or students.
Fundraising activities conducted by informal groups or groups not following these
procedures are prohibited.
Limiting all types of school fundraisers (school, LSC, Parent Teacher
Organization, etc.) to three per year is not overburdening to students, school,
and outside groups.
Always ensure clarity as to who is in charge of each fundraiser (LSC, PTO,
combination, etc.) so that funds may be collected, deposited, and managed
by the correct organization.
When required by the LSC, always remember to complete a Local School
Fundraising Proposal for all fundraising activities. Please review individual
LSC policy for applicability.
A School Expenditure and Requisition Order form must be completed and
approved by the LSC, if applicable. Disbursements related to fundraisers
need approval if the disbursement exceeds the amount requiring LSC
approval, i.e. $1,000 for elementary schools.
A fundraising proposal must be prepared and approved by the principal, REO
and LSC, if applicable, for all fundraising activity prior to the beginning of the
activity. The Local School Fundraising Proposal must be used. (Please see
Appendix C for a copy of the Local School Fundraising Proposal.)
Revenue Generation
5-17
This proposal requests information such as:
•
Time frame for the sale
•
Items to be sold
•
Selling price
•
Anticipated revenue, cost, and profit
•
Appropriate signatures and approval
•
Intended use/distribution of the profits
For fundraising performed through concession sales, a concession sale plan
must be prepared by the faculty sponsor. This concession sales plan must be
approved by the principal and LSC at the beginning of the year. The three
different types of concession sale agreements schools can enter include: a onetime sale, continuous sales, or vending machines.
One Time Sales
For each type of one-time sale, requirements differ depending on the following
situations:
•
The school exclusively conducts the sale.
•
The school and an outside organization jointly conduct the sale.
•
An outside organization exclusively conducts the sale.
•
The LSC exclusively conducts the sale.
1.
Fundraising Conducted Independently by the School
T eacher /
sponsor
prepares
proposal
O btain proper
approval for
O btain
products for
sale
sale
C onduct sale
& deposit
collection with
treasurer
Finish sale &
P repare final
accounting
report
An entire school or formal group of students with a faculty sponsor has the option
of hosting fundraising activities for school-related events. Such fundraising
activities should benefit the student body in the same school year the funds are
collected. The following procedures should be followed when a school decides to
independently conduct a fundraising activity.
These procedures present the basic steps that should be followed when
conducting any school fundraising activity regardless of whether this
activity is independent, held jointly with another organization, or sponsored
by the LSC. Later subsections explain in greater detail how these procedures
change slightly to accommodate specific fundraising situations.
Revenue Generation
5-18
Step 1
Prepare a Local School Fundraising Proposal
Prior to commencing the fundraising activity, the Local School Fundraising
Proposal must be completed and presented to the Principal, AIO, and LSC, if
applicable, for approval.
The proposal requests the following information:
•
Type of items being sold
•
Quantity of items being sold
•
Anticipated cost of items being sold
•
Anticipated revenue from selling items and an estimate of the profit
•
Inclusive dates of sale / duration of sale
•
Proposed use of profits
The faculty member designated as the sponsor of the fundraising event should
prepare this proposal.
Required copies of the Local School Fundraising Proposal must be
maintained at the school. Another copy must be sent to the area office for final
approval prior to the activity.
Step 2
Step 3
Complete a School Expenditure Requisition Order for purchasing
sale items
•
Upon receiving approval(s), the fundraising group must complete the
appropriate School Expenditure Requisition Order. This form should be
presented to the School Treasurer regarding the items to be sold.
•
Prior to delivery, adequate physical safekeeping must be arranged for all
goods ordered.
Obtain products for sale
•
All purchases of goods for sale must meet the guidelines for disbursements
through Internal Accounts.
•
Expenditures for purchases must be made based on a detailed receipt from
the vendor. (Please refer to Chapter 3 for specific payment guidelines.)
•
When possible, money for the fundraising merchandise should be collected
prior to the delivery of the goods in order to lessen the expense of
unaccounted merchandise. Often merchandise is unaccounted for when it is
purchased prior to collecting the money for its expense.
Revenue Generation
5-19
Step 4
Step 5
Conduct sale and deposit collections with School Treasurer
•
The record of inventory and sales for fundraising activities must be
maintained on the Concession Sales Accounting Report. (Please refer to
Appendix B for a copy of the Concession Sales Accounting Report.)
•
All collections from the sale must be submitted to the School Treasurer on
the day of collection.
•
Any event that prevents the teacher/sponsor from submitting the receipts to
the School Treasurer on the day of collection must be explained in writing.
•
All collections must be receipted and recorded in a category specific to the
fundraising activity Account 2-4XXX.
•
For all fundraising activities, it is mandatory that an accurate record of all
funds generated be maintained in the school’s Internal Accounts.
Finish sale and prepare final accounting reports
•
Within 10 school days of the last date of the fundraising activity, the School
Treasurer must submit to the area office a completed Local School
Fundraising Accounting Report and the Concession Sales Accounting
Report. These reports give an appropriate accounting record along with an
inventory of any remaining items. The activity sponsor completes the reports.
•
All missing inventory items must be explained in a written statement signed
by the principal and activity sponsor and attached to the Local School
Fundraising Accounting Report.
•
All funds generated from the fundraising activity should be deposited in the
appropriate fundraising account.
•
The School Treasurer must verify the ending inventory and the sales receipt.
•
An original copy of the Local School Fundraising Accounting Report and
the Concession Sales Accounting Report must be maintained at the
school.
•
Any significant discrepancies must be reported to the Region Business
Manager for review and possible action.
Remember to always complete an accounting reconciliation report at the
completion of each fundraiser. Keep all documentation for school records.
Step 6
Transfer profits to activity accounts
Once all of the receipts have been collected and invoices paid, the remaining
profit should be transferred to a specific activity account.
If a school finds that misuse or misappropriation of funds has occurred,
the school should notify the Inspector General so that the case can be
researched more thoroughly. Misusing and misappropriating school
funds violates the Chicago Board of Education’s Code of Ethics.
Restitution of funds is strictly enforced.
Revenue Generation
5-20
2.
Fundraising for the School Conducted with an
Outside Organization
Schools have the option of hosting a fundraising activity with an outside
organization. This may occur if an outside organization (i.e., the Parent Teacher’s
Association/Organization) has initiated the solicitation and the school has
consented to this request. Each organization should have its own tax ID
number, exemptions, and bank accounts.
A written agreement between the principal and the organization indicating the
division of profits (and expenses) must be executed and maintained on file.
If the school and the outside organization are sharing the profits, then the
fundraising activity should be recorded in the Internal Accounts. Otherwise,
the fundraising activity is being conducted exclusively by the outside organization
(please refer to the following subsection).
Schools should adhere to the following steps when conducting fundraising
activities with an outside organization:
Step 1
Prepare a Local School Fundraising Proposal
•
The school principal and organization should establish a written agreement
indicating the division of revenues (and expenses). This agreement should be
maintained on file.
•
The Local School Fundraising Proposal specifies the percentage of profits
the school will receive from the fundraising activity.
•
The Local School Fundraising Proposal should have the signed approval
of the principal, LSC and REO.
Step 2
Obtain products for sale
Step 3
Conduct sale and deposit collections with School Treasurer
Step 4
•
School officials must collect money from the sale of fundraising goods in
conjunction with the outside organization in order to ensure proper receipt
and record of money collected from student purchases.
•
A proper record of the collections must be maintained at the school site.
•
All funds collected must be deposited in the school’s Internal Accounts.
Finish sale and prepare final accounting reports
•
A summary of the funds collected and the school’s share of the revenue must
be reported in the school’s Internal Accounts.
•
A Local School Fundraising Accounting Report and the Concessions
Sales Accounting Report must be completed and submitted to the area
office no later than 10 school days after the last date of the fundraising
activity.
Revenue Generation
5-21
Step 5
Transfer profits to activity accounts
•
Division of the profits should take place once both parties agree with the
financial account of the funds collected and the expenses incurred.
•
Once the school has properly accounted for the fundraising sales, the school
should submit a check to the outside organization for its share of the
revenue.
3.
Fundraising Conducted Exclusively by Outside
Organizations
(Requests for Charitable Drives, Walk-A-Thons, Read-A-Thons, Math-A-Thons,
PTO/PTA, Friends of Schools, etc.)
The Payroll Deductions Campaign Resolution (98-0128-RS8) authorizes three
separate charitable solicitations during the year: the United Negro College Fund,
the Hispanic Scholarship Fund, and Combined Charities. In addition, our system
supports two other fundraisers: the Children First Walk for Funds and the School
Children’s Aid Society. Each of these solicitations has been assigned a separate
and distinct timeframe for its activities so that CPS employees, in theory, are
spared continual requests for charitable giving.
The reality, however, is that principals are approached many times throughout
the year by well-known organizations for permission to host various “thons” for
charitable purposes. While principals have the authority to approve or disapprove
these requests, the Executive Committee for the Payroll Deductions Campaigns
urges principals to consider carefully demands on staff and student time.
Hundreds of these well-known, established, and worthy charities are represented
already in the Combined Charities, UNCF, and HSF drives. The authorization of
additional numerous campaigns at schools can be additional burdens imposed
on CPS employees.
Organizations Which Have Not Received District-Wide Approval for Their
Campaigns
If the Chicago Board of Education has not approved a district-wide campaign for
an outside organization, then prior approval needs to be obtained from the
principal, LSC and Area Instructional Officer regarding the appropriateness of the
activity. If an organization cannot demonstrate an acceptable correlation between
the fundraising activity and its benefit to the students, then denying the activity’s
access to the school or students is strongly recommended.
The following procedures should be adhered to when an outside organization
(i.e., PTA/PTO) exclusively conducts a fundraising activity on the school’s
premises by soliciting school personnel and students.
Organizations must be accredited groups or agencies in order to raise funds at
the school. These groups and organizations are accountable fully for the funds
generated and the expenses incurred. The principal, the LSC, and the Area
Instructional Officer must approve all fundraising activity conducted by an outside
organization. A copy of the agreement for the use/distribution of profits should be
included with the fundraising proposal when submitted for approval to the AIO.
Revenue Generation
5-22
Step 1
Step 2
Prepare a Local School Fundraising Proposal
•
If the principal is uncertain about the organization’s fundraising status at the
Chicago Board of Education, the principal should contact the Office of School
Instruction Management.
•
If satisfactory, then the organization may host the fundraising activity during
the established time of the district-wide campaign as approved by the
Chicago Board of Education. In this case, an organization is exempt from
completing a Local School Fundraising Proposal.
•
If not, then the organization must obtain the approval of the principal, LSC,
and Area Instructional Officer by completing a Local School Fundraising
Proposal.
Upon approval, conduct the fundraising activity
An organization is fully accountable for the funds generated, the expenses
incurred, and, if it applies, the delivery of the agreed-upon goods and services to
students and faculty in a timely and acceptable manner.
Step 3
The outside organization submits a completed Local School
Fundraising Accounting Report
This report should be submitted to the School and the Office of School Instruction
Management no later than ten school days after the last date of the fundraising
activity.
4.
Local School Council Fundraising
Local School Councils (LSCs) may conduct fundraising activities for legitimate
educational activities that benefit the students of the school the LSC serves or for
the LSC’s incidental operating expenses. All financial activities related to LSC
fundraising must be recorded in the school’s Internal Accounts.
(a) Fundraising for Educational Activities
•
The LSC can raise funds to purchase uniforms, band uniforms, band
equipment, and for other educational purposes for students.
•
All fundraising activities that are ongoing in nature, such as vending
machines and school supplies, cannot be administered by the LSC.
Revenue Generation
5-23
(b) Fundraising for Operating Expenses
•
The value of the fundraising profits generated for LSC operating expenses
shall not exceed a cumulative total of $1,500 per school (fiscal) year if the
school population is under 1,000 students, nor shall it exceed a cumulative
total of $3,000 per school if the school population is 1,000 students or more.
Any excess profits should be transferred to the General Fund.
•
Fundraising at the end of the year will roll over to the next school year. LSCs
cannot operate at a deficit. LSC funds may not exceed above listed amounts.
Note: LSC fundraising budget for fiscal year is reduced by the dollar amount of
the rollover funds.
(c) Permissible Operating Expenses
The LSC is permitted to raise funds for its own operating expenses. These
expenses nay include:
•
Advertisements for Principal Vacancies
•
Stationary and general office supplies
•
Copying/reproduction services and postage
•
Reasonable expenditures for transportation to LSC/school meetings or
workshops
•
Reasonable expenditures for refreshments at meetings
•
Reasonable expenditures for registration fees for workshops, seminars, and
conferences attended by LSC members
(d) Impermissible Operating Expenses
The LSC cannot raise funds for the following operating expenses:
•
Costs associated with seminars, workshops and conferences other than
registration fees
•
Meals and travel expenses beyond the reasonable expenditures for
transportation to LSC/school meetings or workshop
•
LSC campaign-related expenditures
•
Stipends to LSC members for services rendered
•
Any payments made in violation of the CPS Code of Ethics
(e) Guidelines for Conducting LSC Fundraising Activities
The following procedures must be followed by LSCs when fundraising for
educational activities and incidental operating expenses:
Revenue Generation
5-24
Step 1
Prepare Local School Fundraising Proposal
Step 2
Obtain proper approvals
Step 3
Conduct fundraiser and deposit collections with School Treasurer
Step 4
•
Any event that prevents the LSC from remitting the receipts to the School
Treasurer on the day of collection must be explained in writing.
•
All collections must have a receipt and be recorded in a sub-account specific
to the fundraising activity for the LSC.
Finish fundraiser and prepare final accounting reports
•
Within 10 school days of the last date of the fundraising activity, the School
Treasurer must submit to the area office a completed Local School
Fundraising Accounting Report and the Concession Sales Accounting
Report. These reports give an appropriate accounting record along with an
inventory of any remaining items.
•
All missing inventory items must be explained in a written statement signed
by the LSC and the principal, and then attached to the Local School
Fundraising Accounting Report.
•
All funds generated from the fundraising activity must be deposited in the
appropriate fundraising account.
•
The School Treasurer must verify the ending inventory and the sales receipt.
•
An original copy of the Local School Fundraising Accounting Report and
the Concession Sales Accounting Report must be maintained at the
school.
•
Any significant discrepancies must be reported to the Region Business
Manager for review and possible action.
Revenue Generation
5-25
H. Continuous Fundraising Activities and
Concession Sales
A school may conduct its fundraising through continuous sales such as the use
of a vending machine or selling concessions at school-related events.
Requirements for a continuous sale are the same as the one-time sale with a few
exceptions.
Step 1
Prepare Local School Fundraising Proposal
Because the fundraising activity is continuous, if required, a fundraising proposal
must be submitted and approved at the beginning of the year.
Step 2
Obtain proper approvals for sale
Step 3
Conduct sale and deposit collections with School Treasurer
The Concession Sales or Ticket Accounting Reports must be completed and
turned into the School Treasurer at least two times per year, preferably
November and May.
Step 4
Maintain a Perpetual Inventory Card
In order to maintain control over inventory for continuous sales, Perpetual
Inventory Cards are required along with the Concession Sales Accounting
Report. (Please refer to Appendix B for a copy of the Perpetual Inventory Card
and the Concession Sales Accounting Report.) Perpetual inventory Cards
should be updated at least two times per month.
Step 5
Reconcile the fundraising account on a semi-annual basis
If various selling prices are used to sell goods, a difference will arise when
computing the Concession Sales Accounting Report. Differences should
be explained on this report.
What if discrepancies between sales and receipts occur?
All discrepancies must be documented on the accounting form. If unexplained
discrepancies occur, a report must be made to the LSC and the area office.
Depending on the situation, appropriate action will be taken (such as an
investigation by the Inspector General to determine if criminal activity took place
that may result in restitution by individuals involved or disciplinary procedures). A
written plan should be prepared to identify controls and procedures to ensure that
discrepancies do not occur again.
Revenue Generation
5-26
I.
Vending Machines - Beverages
The Chicago Board of Education enters into a vending machine contract for the
entire district. Research is performed to ascertain the level of compensation each
school is entitled to receive as part of standardized fund management and
payment procedures. All “hold-harmless” compensations are to be made via EDI.
Chicago public elementary and high schools were surveyed to obtain data
pertaining to their respective vending machine services activity as well as
associated revenue streams. The revenue streams are utilized to establish each
school’s “hold-harmless” compensation amounts.
Ongoing contact will be maintained with vending machine suppliers to ensure
that timely responses to each school’s needs and to any Board of Education
concerns.
The following procedures must be followed to consolidate vending machine
operations in Chicago Public Schools:
Schools Compensation - In the late summer/early fall, the Department of
Operations - Vending Services will communicate the exact commission structure
and payment process to the schools. Schools will receive a lump sum
compensation in the fall of each school year that reflects the commissions for the
full year based on last year’s sales.
Product Mix – As of the 2004-2005 school year, the Chicago Board of Education
developed a policy on vending machines to offer a healthier selection of products
in all schools. CPS vending machines no longer will contain any carbonated soft
drinks. The Board approved vendor will be authorized to distribute noncarbonated products as follows:
•
In elementary schools, juices containing 100% fruit juice, and in high schools,
juices containing no less than 50% fruit juice
•
Waters
•
Non-carbonated sports drinks
This policy applies to all school vending machines, including teacher’s lounges
and administrative buildings.
Vending Prices - Prices for vending machines will be range from $1.00 for cans
to $1.25 - $1.50 for non-carbonated plastic bottles beverages.
Refund funds - Each school must complete a Refund Form every time for each
refund. Forms will be submitted to vending machine supplier for reimbursement.
Exclusivity - The vending machine contract is an exclusivity agreement. All
Chicago Public Schools requesting a vending machine must use the approved
Board vendor’s products only. No school should have any beverage vending
machine from any provider other than the approved Board supplier.
Revenue Generation
5-27
Board Policy when outside parties, such as PTAs, etc., use CPS facilities When outside parties use school facilities for various activities, these groups
cannot sell beverages that compete with the Board approved vending machine
supplier. However, any beverage brand may be brought into a facility for
personal use.
Machines accessibility - Timers on all elementary and middle school studentaccess vending machines must be on each machine. In accordance with allapplicable State and Federal Guidelines, these timers must be set to turn on
upon the conclusion of classes. Vending machines located in all high schools or
teacher’s lounges (non student areas) will be left on 24 hours a day.
Machines placement - Vending machines must be placed at least thirty (30) feet
from any school cafeteria or sporting venue. If this is not practical, the vending
machine supplier, the Board of Education, and the principal will determine the
best placement of the equipment. Principals must submit a written request for
exemption to the CPS Food Services Bureau explaining the reason for
exemption from this regulation.
Number of machines at schools - The principal will determine the number of
vending machines placed at any school. Each principal can opt not to have a
vending machine. In this case, the school that has received an EDI pre-payment
for the previous school year, these funds will have to be returned to the CPS
Accounts Payable department.
For any questions regarding this project, please contact the Manager of Vending
Product Services for the Chicago Public Schools at 773-553-2942.
Vending machines maintained by the school – Non-beverage
machines
•
If the school does not own the machines, the school must obtain a signed
lease contract for the machines.
•
The school must comply with the following guidelines for continuous sales:
Obtain approval for activity
Prepare a School Expenditure Requisition Order to purchase vending
items
Deposit funds in school Internal Accounts
Maintain inventory
Prepare Concession Sales Accounting Reports
Revenue Generation
5-28
Vending machines maintained by the vendor
Step 1
Obtain signed contract from the vendor
This contract must indicate the profit sharing arrangement and services to be
provided by the vendor as well as establish a payment schedule. Vendors must
be required to make sales data available to the principal in terms of number of
products sold and money collected.
Schools must not enter a vending machine lease that exceeds one year.
Step 2
Verify collections to school
School personnel should verify the amount of money removed from the machine.
This should be done by counting funds with the vendor or using machines with
automatic counters. Whenever possible a school representative should be
present when money is removed from the vending machines. If a school
representative cannot be present for money removal, random checks should be
made to make sure the school is getting its fair share.
Step 3
Deposit profit in Account 2-6XXX
Note: If vending machine funds are from a staff only vending machine and that
money is to be used for staff related expenditures, please deposit funds in
Non-Student Money (2-9000).
How will school acquire vending machines, and who is in charge of them after
they are delivered?
The CPS Board vendor will supply the vending machines to the schools, and be
solely responsible for the maintenance and repairs of the machines. However,
the schools are responsible to notify the vendor of any need for service or
maintenance to the equipment. The vendor will be responsible for repairing,
replacing, relocating, moving or removing any equipment.
Can we add different beverages to the machines?
Only the Board vendor’s beverages may be distributed in vending machines.
CPS has approved vendor sets. No variations will be allowed.
Who incurs the cost, if any, for vending machine installation?
The Board vendor is responsible for contracting and providing all electrical hookups required for the equipment at its sole cost. This includes responsibility for
obtaining any and all permits for the work.
How often is maintenance performed on the vending machines?
The Board approved vendor should provide the following routes sales delivery
call ratio for the schools:
•
Elementary/Middle Schools
1 time per week minimum
(may be adjusted as needed)
•
High Schools
1 time per day, 5 days a week
Revenue Generation
5-29
What should schools expect during a vending machine delivery call?
During service calls the vendor will provide the following maintenance:
•
Update all brand labels/decals
•
Check acceptance of coin mechanisms
•
Check acceptance of dollar bill validator
•
Ensure vendor is cooling vendor’s products to 36 degrees
•
Clean refrigerator condenser
•
Clean surrounding area of any debris resulting from the service/delivery
call
Remember, drivers MUST sign in every time vending machines are serviced.
How quickly should schools expect to receive vending machine assistance
when problems occur?
Every call for service made by a school should be responded to within 24 hours,
Monday through Friday. This timeframe excludes weekends, holidays, school
vacations, school closings, and other occasions when the building is not
accessible. Additionally, the vendor will monitor all machines, and keep a log on
the number of service calls per vending machine. On a monthly basis, the vendor
will provide the Board with a summary of all service calls detailing:
•
Vending machine location
•
When calls were placed by the school
•
When the call was responded to
•
What problems were repaired
•
Service technician responding to the call
Vending Machine Guarantee of Service
All concerns, problems, issues, etc., with your vending machines should be
formally documented on the Service Repair/Refill Form. Please contact the
Manager of Food Services at 773-553-2942 for this form. Along with the above,
please be aware that the project provides for servicing all vending machines
installed at your school. Such services, however, require that your school
adequately document each service request. Therefore, please ensure that your
school maintains this record and utilizes it for all service requests.
How can my school get a vending machine?
If you would like to order a vending machine for your school, please contact the
CPS Manager of Vending Services at 773-553-2942.
Revenue Generation
5-30
J.
Other Revenue Sources
Instructional Materials
How are lost and damaged instructional materials handled?
At the discretion of the principal, the student must pay all payments for loss or
damages to instructional materials directly to the School Treasurer or the
classroom teacher. The student shall be furnished with an individual receipt.
All money collected is to be credited to the Lost and Damaged Instructional
Materials Account 2-1108.
After completing an Expenditure Requisition Order, purchases may be made
from the Lost and Damaged Instructional Materials Account. Lost or damaged
items do not have to be replaced; however, purchases from this account should
be restricted to instructional materials.
If the principal does not wish to make direct purchases, the money may be
remitted to the Bureau of Revenue. Checks should be made payable to
“Chicago Public Schools” with the designation “Lost Instructional Materials” on
the face of the check and a Check Transmittal Form attached. The school’s
Instructional Materials budget appropriation will be credited with the amount
remitted and requisitions for instructional materials may be drawn against the
account.
Scholarship Funds
Scholarship funds can be established to assist students for study in an institution
of higher education. College scholarship funds may be established by a donation
from individuals or groups other than the school’s current student body.
•
Each award should be supported by a written agreement detailing conditions
of the award. One copy shall be maintained at the school.
•
All disbursements of scholarship money should be made directly by the
school to the institution of higher education or directly to the student to
reimburse the student for tuition paid.
The School Treasurer should establish a ledger account for each scholarship
recipient to show the amount of the original award, the disbursement to date, and
the remaining balance on a monthly basis. Once all funds in the scholarship
account have a zero balance, then either add additional funds or close the
account.
The safest way to make payments for scholarships is to pay directly to the
institute of higher learning. This will ensure the money is used for its intended
purpose.
Revenue Generation
5-31
K.
Checklist and Chapter Review
If leasing school property, a lease agreement and the proper insurance
papers must be obtained.
If additional staffing is needed for a leasing event, the school must contact
the Office of Management and Budget to open a position and submit a
check for the position’s expenses.
The Principal and LSC must understand that they may spend lease
income in a manner they determine to be most beneficial to the school and
its students.
For recurring lease income, the payment from the lessee must be sent
directly to the school.
A Local School Fundraising Proposal must be completed for every
fundraising activity.
The school must receive approval from the area office and the principal
before hosting any fundraising activity.
The school must receive LSC approval before hosting a fundraising
activity with an outside organization.
Money collected for school pictures must be deposited directly into the
school’s Internal Accounts.
A Concession Sales Accounting Report must be completed twice a
school year for continuous fundraising activities and concession sales to
give an account of the school’s vending machine sales.
Revenue Generation
5-32
6. Records Management, Retention, and
Disposal
The Chicago Public Schools (“CPS”) Records Management Program addresses
records management issues in the schools, administrative offices, and
departments located throughout the system. All CPS administrative offices,
departments, and schools should be familiar with the CPS Records Management
Policies and with the CPS Records Management Procedures, Forms, and
Record Retention Schedule to ensure compliance with local, state, and federal
requirements for records maintenance and retention. The CPS Records
Management Staff is available to assist the schools, administrative offices, and
departments in complying with the applicable Board, local, state, and federal
requirements.
Please remember, policies are being updated constantly. Therefore, please
ensure you are using the correct policy version. All Policies will be enforced in
accordance with the certified versions of the Policies. In the event of a
discrepancy or a perceived discrepancy, individuals should refer to the certified
Policies, which are available from the Secretary of the Board. The Secretary of
the Board can be contacted at the Chicago Board of Education, 125 South Clark
Street, 6th Floor, Chicago, IL 60603, 773-553-1600.
CPS Records Management Policies
•
Retention and Management of Business Records [01-0725-PO3]
•
Guidelines for Maintenance of Student Records [01-0328-PO2]
•
Parent and Student Rights of Access to and Confidentiality of Student
Records [04-0623-PO3]
•
Compliance with Freedom of Information Act Requests [00-0524-PO1]
Please visit the CPS Policy Website at http://policy.cps.k12.il.us/ for the Records
Management Policies and all CPS policies. The above policies may also be
located in Appendix F of this manual.
Records Management, Retention, and Disposal
6-1
A.
Schools
1.
General
A. To help the schools follow CPS policies on records maintenance, retention,
and disposal, the CPS Records Management Program has issued Records
Management Procedures, Forms, and Retention Schedule. Please
contact the Records Management Staff for the most current copy of this
information.
B. Each school principal is required to appoint a school employee to act as
records custodian. This individual is responsible for the maintenance, care,
and security of school records.
C. Schools maintain both student records and school business-related records.
Both student and business-related records should be stored in the school
while the records are active. Active records should be maintained so that
others may use and find them. All required information and dates should be
completed on all records.
D. Each school should maintain information listing records that are transferred to
offsite storage, requested, and disposed.
2.
Records Storage
A. Once student and business-related records become inactive, records may be
stored using the Board-approved offsite storage facility.
B. Sending inactive files to offsite storage will relieve schools of the burden of
storing inactive records and help ensure compliance with Board, local, state,
and federal requirements.
C. To store records offsite
1. Contact CPS Records Management Staff for a copy of the Records
Management Procedures, Forms, and Retention Schedule and
request records management supplies (boxes and barcode labels) for
packing records.
2. Review the records currently being stored in your school.
3. Pack records and label boxes according to the procedure regarding
transferring records to offsite storage.
4. Complete the Business Records Data Input Form and/or Student
Records Data Input Form and maintain this information as required.
5. Provide CPS Records Management Staff with a copy of the completed
form(s) by Fax or through CPS Distribution.
6. CPS Records Management Staff will make arrangements with CPS
Distribution for picking up boxes of records.
D.
To access records sent to offsite storage, call the CPS Records
Management Staff.
Records Management, Retention, and Disposal
6-2
3.
Records Disposal
A. CPS has a record retention schedule that has been approved by the Illinois
Local Records Commission of Cook County. This schedule lists how long
CPS is required to maintain both student and business-related records and is
updated from time to time.
B. Records cannot be destroyed before their retention period is over. Once the
retention period for a record has expired, the record is eligible for proper
records disposal.
C. Schools may not throw away or shred any student or business-related
records.
D. CPS is required by law to obtain approval from the Illinois Local Records
Commission of Cook County prior to disposing records. Destroying any
records prior to obtaining this approval is a Class 4 felony.
E. The CPS Records Management Staff will obtain all necessary approvals for
records to be disposed of properly.
F. To dispose of records
1. Contact CPS Records Management Staff for a copy of the Records
Management Procedures, Forms, and Retention Schedule.
2. Review records and verify that records can be disposed pursuant to the
most current approved Record Retention Schedule.
3. Pack records and label boxes according to the procedure regarding
disposal of records.
4. Complete the Record Disposal Form as required.
5. Provide CPS Records Management Staff with a copy of the completed
form(s) by Fax or through CPS Distribution.
6. CPS Records Management Staff will make arrangements with CPS
Distribution for picking up boxes of records.
G. Please notify Records Management Staff if records found in your school are
not currently listed on the approved Record Retention Schedule.
Records Management, Retention, and Disposal
6-3
B. Administrative Offices and Departments
1.
General
A. To help the CPS administrative offices and departments follow CPS policies
on records maintenance, retention, and disposal, the CPS Records
Management Program has issued Records Management Procedures,
Forms, and Retention Schedule. Please contact the Records Management
Staff for the most current copy of this information.
B. Each administrative office and department should have an appointed
employee to administer and coordinate records management functions.
C. Active records should be maintained so that others may use and find them.
All required information and dates should be completed on all records.
D. Each administrative office and department should maintain information listing
records that are transferred to offsite storage, retrieved from offsite storage,
and disposed. The appointed records coordinator should review this
information on a regular basis to ensure that information is accurate and that
records are disposed as soon as they are eligible.
2.
Records Storage
A. Once administrative/business records become inactive, records may be
stored using the Board-approved offsite storage facility.
B. Sending inactive files to offsite storage will provide more storage space
onsite for active records and help ensure compliance with Board, local, state,
and federal requirements.
C. To store records offsite
1. Contact CPS Records Management Staff for a copy of the Records
Management Procedures, Forms, and Retention Schedule and
request records management supplies (boxes and barcode labels) for
packing records.
2. Review the records currently being stored in your office.
3. Pack records and label boxes according to the procedure regarding
transferring records to offsite storage.
4. Complete the Business Records Data Input Form and maintain this
information as required.
5. Provide CPS Records Management Staff with a copy of the completed
form(s) by Fax or through CPS Distribution.
6. Arrange for a pickup of boxes of records to offsite storage.
3.
Records Disposal
A. CPS has a record retention schedule that has been approved by the Illinois
Records Management, Retention, and Disposal
6-4
Local Records Commission of Cook County. This schedule lists how long
CPS is required to maintain both student and business-related records and is
updated from time to time.
B. Records cannot be destroyed before their retention period is over. Once the
retention period for a record has expired, the record is eligible for proper
record disposal.
C. CPS employees may not throw away or shred any student or business
records.
D. CPS is required by law to obtain approval from the Illinois Local Records
Commission of Cook County prior to disposing records. Destroying any
records prior to obtaining this approval is a Class 4 felony.
E. The CPS Records Management Staff will obtain all necessary approvals for
records to be disposed of properly.
F. To dispose of records
1. Contact CPS Records Management Staff for a copy of the Records
Management Procedures, Forms, and Retention Schedule.
2. Review records onsite and/or those previously sent to offsite storage.
Verify that records can be disposed pursuant to the most current
approved Record Retention Schedule.
3. Pack onsite eligible records and label boxes according to the procedure
regarding disposal of records.
4. Complete the Record Disposal Form as required.
5. Provide CPS Records Management Staff with a copy of the completed
Record Disposal Form(s) by Fax or through CPS Distribution.
6. Once CPS Records Management Staff approve completed Record
Disposal Form(s), arrangements will be made for onsite records eligible
for the disposal to be delivered to the Student Records Services
warehouse where disposal will take place. Records eligible for disposal
currently stored at offsite commercial storage will be disposed at the
storage facility after the disposals have been approved.
G. Please notify Records Management Staff if records found in your office are
not currently listed on the approved Record Retention Schedule.
Records Management, Retention, and Disposal
6-5
4.
Retrieval of Records from Offsite Storage and
Returning Records to Offsite Storage
A. Administrative offices and departments with a need to retrieve records
previously sent to offsite storage should refer to their department’s storage
records for required box and barcode information and to the procedures for
retrieval of records from offsite storage and procedures for returning records
to offsite storage.
B. To retrieve records from offsite storage, complete the Record Request Form
as required to document records being requested.
C. Arrange for offsite commercial storage to deliver required records.
D. Once records retrieved are no longer needed, records should be returned to
offsite storage as soon as possible.
E.
Following up with individuals using retrieved records may be required until
the records have been returned.
F.
To return records to offsite storage, refer to the procedure regarding returning
records to offsite storage and update departmental records and/or the
Record Request Form as required to document when records have been
returned to offsite storage.
G. Arrange for offsite commercial storage to pickup records and return them to
offsite storage.
To obtain the most current information regarding
records management policies, procedures,
forms, and record retention, and for all recordsrelated questions, please contact the Records
Management Staff in the Law Department:
773-553-1700
Enterprise Records Manager
773-553-1679
Records Systems Administrator
773-553-1593
Records Management, Retention, and Disposal
6-6
Appendix A – Internal Accounts
• Chart of Accounts
• Trial Balance Sample
• School Sport Officials Form
• Petty Cash Reconciliation
• Student Fee Waiver Form
• Tax Identification and Exemption Letter
Appendix A – Internal Accounts
A-1
Chart of Accounts
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/CPS_Chart_of_Accounts.xls
Appendix A – Internal Accounts
A-2
Trial Balance Sample
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Trial_Balance_Sample.xls
Appendix A – Internal Accounts
A-3
School Sport Officials Form
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/School_Sport_Officials_Form.xls
Appendix A – Internal Accounts
A-4
Petty Cash Reconciliation
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Petty_Cash_reconciliation_school_form.xls
Appendix A – Internal Accounts
A-5
Student Fee Waiver Form
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Student_Fee_Waiver_Form.xls
Appendix A – Internal Accounts
A-6
Tax Identification and Exemption Letter
http://www.cps.k12.il.us/AboutCPS/Departments/finance/forms/Tax_Exempt.pdf
Appendix A – Internal Accounts
A-7
Appendix B – Cash Receipts/Revenue
• Treasurer’s Receipt
• Teacher’s Receipt
• Payor List
• School Usage Permit
• Concession Sales Accounting Report
• Ticket Accounting Report
• Perpetual Inventory Card/Report
• Check Transmittal Form
• Grants, Gift, and Donations Access Request Form
• Receipt Memorandum
Appendix B – Cash Receipts/Revenue
B-1
Treasurer’s Receipt
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Treasurers_Receipt.xls
Appendix B – Cash Receipts/Revenue
B-2
INSTRUCTIONS FOR PREPARATION OF SCHOOOL TREASURER’S RECEIPT
A school Treasurer’s Receipt is to be prepared immediately upon receipt of all
monies by the School Treasurer.
1. All receipts should be completed in ink showing the current date, cash
amount, check amount, account to receive credit, the name of the person
making the deposit, Teacher’s Receipt number or “List of Names on File,”
and the treasurer’s signature.
2. All receipts must be completed in duplicate, with an original issued to the
person from whom the funds were received and the duplicate kept intact in
the receipt book.
3. All receipts must be issued in numerical sequence.
4. When it is necessary to void a receipt, the word VOID should be written in
BOLD letters across the face of the original and the duplicate copies of the
receipt and both copies left intact in the receipt book.
5. The reverse side of the last duplicate school Treasurer’s Receipt, covering
those funds that are being deposited, should be completed in its entirety
when the School Treasurer is making a deposit.
Appendix B – Cash Receipts/Revenue
B-3
Teacher’s Receipt
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Teachers_Receipt.xls
Appendix B – Cash Receipts/Revenue
B-4
INSTRUCTIONS FOR PREPARATION OF TEACHER’S RECEIPT
Teacher’s Receipts must be prepared for all monies collected by school
personnel who are authorized by the Principal to make such collections.
However, when group participation is anticipated, (i.e. charitable contributions,
field trips, graduation, workbooks, etc.) a list of payor names will be acceptable in
lieu of duplicate receipts.
1. Teacher’s Receipts should be prepared in ink and must show the date the
money was received, the amount received, cash or check, the purpose of the
collection, and the person from whom the money was received. The person
receiving the money must sign all receipts.
2. All receipts must be prepared in duplicate, with the original copy issued to the
person from whom the money was received and the duplicate copy kept
intact in the receipt book.
3. Receipts must be issued in numerical sequence.
4. When it is necessary to void a receipt, the word VOID should be written in
BOLD letters across the face of the original and the duplicate copies of the
receipt left intact in the receipt book.
5. All money collected must be deposited daily with the School Treasurer. The
Teacher’s Receipt book or a list of payor names, as noted above, must be
presented to the School Treasurer when deposits are made.
6. Each time the receipt book is presented, the School Treasurer must complete
the reverse side of the last duplicate receipt in the Teacher’s Receipt Book
covering deposits with the School Treasurer.
7. Receipt books must be returned to the School Treasurer after each activity.
These receipts books are to be reissued for the next event. All receipt books
must be returned to the School Treasurer at the end of the school year.
Appendix B – Cash Receipts/Revenue
B-5
Payor List
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Payor_List.xls
Appendix B – Cash Receipts/Revenue
B-6
School Usage Permit
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/School_Usage_Permit.xls
Appendix B – Cash Receipts/Revenue
B-7
Concession Sales Accounting Report
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Consession_Sales_Accounting_Report.xls
Appendix B – Cash Receipts/Revenue
B-8
Ticket Accounting Report
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Ticket_Accounting_Report.xls
Appendix B – Cash Receipts/Revenue
B-9
Perpetual Inventory Card/Report
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Perpetual_Inventory_Card.xls
Appendix B – Cash Receipts/Revenue
B - 10
INSTRUCTIONS FOR PREPARING PERPETUAL INVENTORY CARD (AUDIT 160-A)
Sales of a continuous nature, i.e. locks and other items sold by a school, require the use
of Perpetual Inventory Cards. This card is an additional record keeping aid used in
conjunction with the Concession Sales Accounting Report. Teacher-sponsors
conducting periodic sales; i.e. candy taffy apples, etc. may elect to use Perpetual
Inventory Cards in additional to the Concession Sales Accounting Report when
numerous transactions are anticipated controls are needed.
TEACHER-SPONSOR:
1. Complete the information required at the top of the report.
2.
a. The beginning inventory withdrawn from the School Treasurer on the Internal
Accounts Monthly Trial Balance or the quantity of sale items on hand per
physical count, from previous semi-annual reporting period is entered in
columns (2) and (5). Enter the appropriate date in column (1).
b. Inventory data transferred from one inventory card to another (due to additional
space requirements) at any time other than at the end of a periodic sale or
semi-annual reporting period, is posted from the total line for columns (2), (3),
(4), (5), and (8) of the previous card. Enter the appropriate date in column (1).
3. As additional inventory items are withdrawn from the School Treasurer on form
Internal Accounts Monthly Trial Balance, enter the date and quantity withdrawn in
columns (1) and (3) respectively.
4. As sales are made, the summary of sale activity is entered in column (1) and (4)
respectively.
5. Column (5) is increased by the amount posted to column (3) and decreased by the
amount posted to column (4).
6. As cash receipts are deposited with the School Treasurer, complete columns (6), (7),
and (8).
7. At the conclusion of the sale or at the end of the reporting period (November or
May), total all columns except columns (5), (6), and (7).
8. Indicate whether the totals are being carried forward to a new card and/or if they are
being recorded on a Concession Sales Accounting Report by checking the
appropriate box(es) on the Perpetual Inventory Card.
NOTE: If the totals pertain to the end of a periodic sale or semi-annual reporting period,
the MUST be posted to a Concession Sales Accounting Report.
Perpetual Inventory Cards must be attached to the original copy of the Concession
Sales Accounting Report to support the information reported.
Appendix B – Cash Receipts/Revenue
B - 11
Check Transmittal Form
http://www.cps.k12.il.us/AboutCPS/Departments/finance/forms/Check_Transmittal_Form_and_Sample.pdf
Appendix B – Cash Receipts/Revenue
B - 12
Grants, Gift, and Donations Access Request Form
http://www.cps.k12.il.us/AboutCPS/Departments/finance/Grant_Gift_Donation_Application_Request_Form.pdf
Appendix B – Cash Receipts/Revenue
B - 13
Receipt Memorandum
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Receipt_Memorandum.doc
Appendix B – Cash Receipts/Revenue
B - 14
Appendix C – Fundraising
• Local School Fundraising Accounting Proposal
• Local School Fundraising Accounting Report
Appendix C – Fundraising
C-1
Local School Fundraising Accounting Proposal
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Local_School_Fundraising_Accounting_Proposal.xls
Appendix C – Fundraising
C-2
Procedures for Conducting Fundraising Activities in the Schools
For all fundraising activities
1. Complete the Local School Fundraising Proposal.
2. Obtain the prior written approval of the principal. This approval is required for all
fundraising activities regardless of anticipated receipt value.
3. Obtain the prior written approval of the Area Instructional Officer. This approval is
required for all sales.
For all school and LSC-sponsored fundraising activities as well as fundraising
activities conducted with an outside organization.
1. Ensure the entire school or formal group is hosting or co-hosting the fundraising
activity. A formal group must be a pre-defined group of students, such as a class or
club, with a teacher or faculty member sponsor. A random group of students or
partial collection of students from a class or club does not legitimize a formal group.
2. Complete steps (1-3) outlined for all fundraising activities.
3. Note: The Office of School Financial Services recommends that if an entire school or
a large student body is conducting a fundraiser, then the school pre-sell fundraising
merchandise before delivering the product (i.e. catalog ordering). This
recommendation is made to prevent the school from losing profits because
fundraising merchandise is lost or unaccounted for without receiving proper
payment.
4. Deposit fundraising sales daily with the School Treasurer. This policy also applies to
fundraising activities sponsored by Local School Council. At the conclusion of the
sale, should an out-of-school organization be involved, their share of the profits will
be paid out of the Internal Accounts by the school.
5. Complete the Local School Fundraising Accounting Report. This form requests a
financial account of the actual money collected, expenses incurred and profit made
from the fundraising activity. This report is due no later than 1 week from the closing
date of the fundraising activity.
For fundraising activities conducted by an outside organization (i.e. College
Fund/UNCF, United Way, National Hispanic Scholarship Fund)
1. Ensure the organization is an accredited group or agency approved be the Chicago
Board of Education to host a fundraising activity in the schools. You may call the
Bureau of General Accounting to verify this fact.
2. School personnel may serve in a capacity to collect the funds. Checks should be
made payable directly to the organization. If cash is received, it should be deposited
with the School Treasurer who will write a school check payable to the organization
for the same amount of cash received.
Appendix C – Fundraising
C-3
Local School Fundraising Accounting Report
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Local_School_Fundraising_Accounting_Report.xls
Appendix C – Fundraising
C-4
Appendix D – Cash Advances, Payables, and
Purchasing
• School Expenditure Requisition Order
• Requisition Worksheet
• School Cash Advance Reconciliation
• Web Inquiry
• Oracle Budget Transfer Tool
• Reimbursement Form
• Letter of Funds Distribution Request
Appendix D – Cash Advances, Payables, and Purchasing
D-1
School Expenditure Requisition Order
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/School_Expenditure_Requisition_Order.xls
Appendix D – Cash Advances, Payables, and Purchasing
D-2
Requisition Worksheet
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Requisition_Worksheet.xls
Appendix D – Cash Advances, Payables, and Purchasing
D-3
School Cash Advance Reconciliation
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/School_Cash_Advance_Reconcilation.xls
Appendix D – Cash Advances, Payables, and Purchasing
D-4
Web Inquiry
With the Oracle Web Inquiry Tool, you may translate between legacy and Oracle
chart of accounts, check your budget balances, look up purchase orders and
invoices, perform vendors, and review CPS locations.
Please access the Web Inquiry Tool via the Oracle applications login page at
http://erp.csc.cps.k12.il.us:8000/OA_HTML/US/ICXINDEX_appsprod_erp.htm
Chart of Accounts Translator
From the COA/Funds tab, you may translate budget lines and check funds.
Enter either legacy
or Oracle account
information.
Click on the arrow
buttons to perform
account translation.
Click on the Funds
Lookup button to
review funds
available, budget
and expenditures.
Appendix D – Cash Advances, Payables, and Purchasing
D-5
Segment Lookup
From the Segment Lookup tab, you may search on any chart of account
segment (Unit, Fund, Account, Program, or Grant). Enter either the legacy or
Oracle segment to translate.
Select the
appropriate
segment to
review. Type the
value in the
Search Criteria
box.
Appendix D – Cash Advances, Payables, and Purchasing
D-6
PO/Invoice
From the PO/Invoice tab, you may search on invoices, purchase orders,
requisitions.
For Purchase Orders, narrow criteria by entering PO number or status (open or
closed), dates, vendor name or number, Board Report number, or budget line.
Appendix D – Cash Advances, Payables, and Purchasing
D-7
For Invoices, narrow criteria by entering vendor name or number, invoice or PO
number, dates, or budget line.
For Requisitions, narrow criteria by entering vendor name or number, requisition
or PO number, dates, or budget line.
Appendix D – Cash Advances, Payables, and Purchasing
D-8
From the Vendor tab, narrow criteria by entering vendor name, number, status or
type.
Appendix D – Cash Advances, Payables, and Purchasing
D-9
Locations
From the Locations tab, view CPS locations by using search criteria such as unit
or location name, Oracle or legacy unit number, address information, or location
status.
Appendix D – Cash Advances, Payables, and Purchasing
D - 10
Budget
From the Budget tab, check original and current budgets, commitments,
obligations, expenditures, and funds available.
Appendix D – Cash Advances, Payables, and Purchasing
D - 11
Oracle Budget Transfer Tool
To transfer funds on Oracle budget lines, use the Oracle Budget Transfer Tool.
Access this tool through the Oracle applications login screen
http://erp.csc.cps.k12.il.us:8000/OA_HTML/US/ICXINDEX_appsprod_erp.htm
and then selecting the “CPS PSB Budget Transfer” responsibility. Please refer
to the Office of Management and Budget’s budget manual for addition
information.
Enter Oracle
budget line to
transfer FROM
Enter Oracle
budget line to
transfer TO.
Enter amount
to be
transferred.
Enter reason
for budget
transfer
request.
Show funds
available.
Click the Submit
Request Button
to complete the
budget transfer
request.
Appendix D – Cash Advances, Payables, and Purchasing
D - 12
Reimbursement Form
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/AP_Reimbursements.pdf
Appendix D – Cash Advances, Payables, and Purchasing
D - 13
Letter of Funds Distribution Request
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/AP_Letter_of_Funds_Distribution_Request.pdf
Appendix D – Cash Advances, Payables, and Purchasing
D - 14
Appendix E – Assets and Equipment
•
Furniture and Equipment Register
•
Asset Transfer and Disposal Form
•
Instructions for Completing the Asset Register and the
Asset Transfer/Disposal Forms
•
Burglary and Theft Report
Appendix E – Assets and Equipment
E-1
Furniture and Equipment Register
http://www.cps.k12.il.us/AboutCPS/Departments/finance/forms/Asset Register.xls
Appendix E – Assets and Equipment
E-2
Asset Transfer and Disposal Form
http://www.cps.k12.il.us/AboutCPS/Departments/finance/forms/Asset Disposal-Transfer Form.xls
Appendix E – Assets and Equipment
E-3
Instructions for Completing the Asset Register and the Asset
Transfer/Disposal Forms
http://www.cps.k12.il.us/AboutCPS/Departments/finance/forms/Asset_Register-Disposal_Instructions.pdf
Appendix E – Assets and Equipment
E-4
Burglary and Theft Report
http://cps.k12.il.us/AboutCPS/Departments/finance/forms/Buglary-Theft-Property_Destruction_Report.xls
Appendix E – Assets and Equipment
E-5
Appendix F – Policies and Procedures
•
Policy Regarding Financial Supervision
•
Policy on Educational Crisis
•
Amend Resolution 86-0625-RS1, Resolution Concerning
Misappropriated or Misused School Funds
•
Imposition of Charges on Returned Payment Instruments
•
Investment Policy
•
Debt Management Policy
•
Student Travel
•
Reimbursement for Work-Related Expenses
•
Purchasing Board Report Procedures
•
Code of Ethics
•
Maintenance and Disposal of Assets
•
Guidelines for Establishing Elementary and High School
Student Fees
•
Policy Regarding Waiver of School Fees
•
Acceptance of All Grants, Gifts, and Donations
•
Policy on Local School Council Fundraising
•
Retention and Management of Business Records
•
Guidelines for Maintenance of Student Records
•
Parent and Student Rights of Access to and Confidentiality
of Student Records
•
Compliance with Freedom of Information Act Requests
•
State Chapter 1 Expenditure Guidelines
Appendix F – Policies and Procedures
F-1
Policy Regarding Financial Supervision
http://policy.cps.k12.il.us/documents/401.10.pdf
Appendix F – Policies and Procedures
F-2
Policy on Educational Crisis
http://policy.cps.k12.il.us/documents/302.1.pdf
Appendix F – Policies and Procedures
F-3
Amend Resolution 86-0625-RS1, Resolution
Concerning Misappropriated or Misused School
Funds
http://policy.cps.k12.il.us/documents/406.1.pdf
Appendix F – Policies and Procedures
F-4
Imposition of Charges on Returned Payment
Instruments
http://policy.cps.k12.il.us/documents/403.7.pdf
Appendix F – Policies and Procedures
F-5
Investment Policy
http://policy.cps.k12.il.us/documents/403.1.pdf
Appendix F – Policies and Procedures
F-6
Debt Management Policy
http://policy.cps.k12.il.us/documents/404.1.pdf
Appendix F – Policies and Procedures
F-7
Student Travel
http://policy.cps.k12.il.us/documents/604.3.pdf
Appendix F – Policies and Procedures
F-8
Reimbursement for Work-Related Expenses
http://policy.cps.k12.il.us/documents/507.1.pdf
Appendix F – Policies and Procedures
F-9
Purchasing Board Report Procedures
http://www.csc.cps.k12.il.us/purchasing/board_reports.html
http://www.csc.cps.k12.il.us/purchasing/ppts/Board_Rule_Changes_11-01-04.ppt
Appendix F – Policies and Procedures
F - 10
Code of Ethics
http://policy.cps.k12.il.us/documents/503.1.pdf
Appendix F – Policies and Procedures
F - 11
Maintenance and Disposal of Assets
http://policy.cps.k12.il.us/documents/401.9.pdf
Appendix F – Policies and Procedures
F - 12
Guidelines for Establishing Elementary and High
School Student Fees
http://policy.cps.k12.il.us/documents/408.2.pdf
Appendix F – Policies and Procedures
F - 13
Policy Regarding Waiver of School Fees
http://policy.cps.k12.il.us/documents/408.1.pdf
Appendix F – Policies and Procedures
F - 14
Acceptance of All Grants, Gifts, and Donations
http://policy.cps.k12.il.us/documents/403.3.pdf
Appendix F – Policies and Procedures
F - 15
Policy on Local School Council Fundraising
http://policy.cps.k12.il.us/documents/401.7.pdf
Appendix F – Policies and Procedures
F - 16
Retention and Management of Business Records
http://policy.cps.k12.il.us/documents/203.2.pdf
Appendix F – Policies and Procedures
F - 17
Guidelines for Maintenance of Student Records
http://policy.cps.k12.il.us/documents/706.1.pdf
Appendix F – Policies and Procedures
F - 18
Parent and Student Rights of Access to and
Confidentiality of Student Records
http://policy.cps.k12.il.us/documents/706.3.pdf
Appendix F – Policies and Procedures
F - 19
Compliance with Freedom of Information Act
Requests
http://policy.cps.k12.il.us/documents/203.1.pdf
Appendix F – Policies and Procedures
F - 20
State Chapter 1 Expenditure Guidelines
http://policy.cps.k12.il.us/documents/401.5.pdf
Appendix F – Policies and Procedures
F - 21
Appendix G – Frequently Asked Questions
Controller’s Office/General Accounting
Q: What departments are under the Office of School Financial Services?
A: The Office of School Financial Services includes the Chief Financial Office,
Controller’s Office, General Accounting, Risk Management, Account Payable,
Treasury & Debt Management, School Business Services, Payroll Services,
and Revenue.
Q: What is the website for the Office of School Financial Services?
A: The website for the Office of School Business Services is:
http://www.cps.k12.il.us/AboutCPS/Departments/finance/index.html
Q: What is the procedure for obtaining Oracle access?
A: For iProcurement, Budget Transfer or Gift/Grants/Donation access forms, go
to the Oracle Applications Website at
https://erp.csc.cps.k12.il.us:8443/OA_HTML/cps_portal_doc/index.html, or
contact the Office of Enterprise Financial Systems at 773-553-4101 for
iProcurement and Budget Transfer form, and For the Grant/Gift/Donation
Application access request form, go to the Office of Management and Budget
website at
https://erp.csc.cps.k12.il.us:8443/OA_HTML/cps_portal_doc/user_req_forms/
Grant_Access_Request.doc
Q: What is a FEIN (or EIN)?
A: Federal Tax ID Number
Q: What is Chicago Public Schools’ FEIN?
A: 36-6005821
Each Chicago Public Schools unit shares the same FEIN as the Central
Office and should never report a different number.
Appendix G – FAQ
G-1
Q: How does the Department of Food Services calculate school vending
machine funds?
A: Vending machine payments represent an advance payment for the next fiscal
year that is estimated at 50% of previous year’s earnings and the
reconciliation of earnings from the prior fiscal year.
Q: When and how are a school’s beverage funds distributed?
A: Food Services reconciles the beverage fund earnings in August/September
and provides the Controller’s Office a file for distribution. Payments are sent
electronically to school bank accounts for units that have complied with the
Internal Account Survey requirements – online Internal Accounts Survey,
May general ledger reconciliation, May bank statement, and Asset/Equipment
Register.
Q: How does the Chicago Public Schools report its financial condition?
A: Each year, School Financial Services produces an annual report. The report
is distributed in a comprehensive format (CAFR) and in a popular version
(PAFR). These reports include audited financial numbers for the entire district
for the one-year fiscal period dated July1 through June 30 of each year.
Q: How may I get a copy of the Insider’s Guide to School Business and
Internal Accounts Manual?
A: Contact the Controller’s Office at 773-553-2710. You may also get a copy of
the manual on-line at
http://www.cps.k12.il.us/AboutCPS/Departments/finance/IAmanual/
Q: What is a CAFR?
A: The Comprehensive Annual Financial Report (CAFR) is the official report for
government agencies and includes combined statements of revenues,
expenditures, and changes in the financial position. This report also provides
supporting schedules necessary to demonstrate compliance with financerelated legal and contractual provisions, extensive introductory material, and
a statistical section that gives more detailed information on Chicago Public
Schools and the local environment.
Appendix G – FAQ
G-2
Q: What is a PAFR?
A: The Popular Annual Financial Report (PAFR) presents the financial
information in a way that is more understandable to parents, taxpayers, and
civic leaders.
Q: Where are the CPS annual reports published?
A: The annual reports may be located online at
http://www.cps.k12.il.us/AboutCPS/Financial_Information/CAFR/cafr.html
Copies of the CPS annual report are available by contacting the Controller’s
Office at 773-553-2710.
Accounts Receivable
Q: Where are Central Office payments sent?
A: The Central Office has one payment center - Accounts Receivable 125 South
Clark, 14th Floor, GSR 125. General interoffice mail routes are effective, safe,
and fast for sending payments - personal visits are not required. All payments
should be identified by check number, account, or dollar amount to verify
deposit dates.
The Central Office bank account accepts AR endorsement of payments made
payable to any school unit name or Central Office name. It is acceptable to
send the Central Office a check made payable to a school for a deposit.
Q: If a payment is sent to the Central Office for deposit, who is the contact to
request and verify funds are loaded to a specific budget line?
A: Because of a separation of powers between Finance and the Office of
Management and Budget, the Office of Management and Budget is the only
CPS department authorized to load funds to a budget line. (This process
provides for a check and balance system between depositing and loading
funds to budget lines to exist.)
Appendix G – FAQ
G-3
Q: What are 280 funds?
A: Fund 280 is the Special Income Fund. This fund includes monies received
from grants and donations from various foundations, individuals,
charitable/civic organizations, and private corporations, as well as rental
income of school areas (parking lots, auditoriums, classrooms, etc.). Fund
280 balances are carried over from year to year. Please refer to
http://www.cps.k12.il.us/AboutCPS/Departments/management/Fund_280.pdf
for additional information.
Q: What department do I contact for fund 280 requests?
A: Please contact the Office of Management and Budget for fund 280 requests.
Q: How are non-sufficient funds (NSF) check handled in our internal
accounts?
A: Pursuant to Board Policy 403.7
(http://policy.cps.k12.il.us/documents/403.7.pdf), a CPS unit should charge a
return payment fee of $34.00 in addition to the original amount due from the
payer. Please post signs to inform parents and others of the NSF fee.
Q: What is procedure for rental income?
A: Rental income should be deposited into the school’s internal accounts. These
funds may be used at the school’s discretion. For most rentals, an engineer
or security officer may need to be present. A portion of the rental funds may
be used to cover the salaries. A school should deposit the entire check into
their internal accounts and then issue CPS a check for any estimated funds
to be added to a bucket position. Please refer to the Office of Management
and Budget’s Fund 280 procedures for further clarification.
Contact the Department of Real Estate before signing any rental agreements.
Appendix G – FAQ
G-4
Q: What is the current rate for Non-Resident Tuition?
A: The Illinois State Board of Education (ISBE) calculates the non-resident
tuition rate for school districts in Illinois. This information is based upon
school district expenditures and attendance records. This information is
disseminated by ISBE in April for the preceding year.
Any non-resident student wishing to attend a CPS school must pay 110% of
the non-resident tuition rate and gain the principal’s permission prior to
attending the school. Non-resident students are not allowed to attend any
magnet schools. The current rate is $6,772.47. The Board rule may be
referenced in Section 5-17 of the Board Rules:
http://www.cps.k12.il.us/AboutCPS/Board/Board_Rules/Chapter_V.pdf
Any student that becomes a non-resident during the course of a school year
shall not be charged non-resident tuition for the remainder of the year.
However, the student shall not be allowed to attend the CPS school the
following year.
Q: What happens if I do not promptly deposit checks issued to our school
from the State Comptroller’s Office on behalf of a state agency?
A: All funds received should be promptly deposited. Many schools receive
reimbursement from state agencies (such as prom or graduation fees from
DCFS or substitute reimbursements from ISBE). The Accounts Receivable
unit completes a quarterly review of all checks issued and not deposited. If a
check has not been deposited, the Receivables Department will request the
state void the payment instrument and reissue the payment to the Central
Office for deposit.
Appendix G – FAQ
G-5
Grant Acceptance
Q: How do schools accept grants?
A: Any CPS unit that receives any type of grant, gift, or donation from a
parent/teacher organization or private entity must gain approval from the
Chief Financial Officer (CFO) prior to using these funds. An Oracle based
grants, gifts, and donations system has been developed to obtain quick and
easy approval. This database includes imaging and a permanent record
available to the school. Effective November 2004, to comply with state laws,
the Board passed policy 404.3
(http://policy.cps.k12.il.us/documents/403.3.pdf) related to the acceptance of
grants.
Donations are to be itemized in the school’s internal account survey.
Grant Acceptance questions may be directed to the Grant Acceptance E-mail
address at [email protected] or by contacting the Grant
Acceptance Department at 773-553-2394.
Q: Who should sign the agreement for governmental grants at CPS?
A: The Chief Financial Officer (CFO) is authorized to sign grant agreements
from governmental agencies on behalf of CPS. Following the grant
acceptance process, please contact the Grant Acceptance Department to
obtain CFO approval for the execution of any agreements in which CPS will
receive funds.
Appendix G – FAQ
G-6
Grant Reporting
Q: Who performs the financial reporting for a received grant?
A: The Grant Reporting Unit is responsible for reporting all financial expenses
related to governmental grants, including federal funds that flow through third
parties such as university. Any narrative reporting is required to be completed
by the “hands-on” grant administrator who is expensing the funds. The Grant
Reporting Unit ensures that governmental grant funds are appropriated to the
appropriate unit prior to receiving the funds. The Grant Reporting Unit
ensures collection and proper expenditure reporting and also maintains a file
to satisfy audit requests. Periodic notices from the Grant Reporting Unit will
be sent to schools/units if missing documentation has not been obtained.
Examples of governmental funding agencies include: Illinois Art Council,
Department of Commerce & Economic Opportunity, and Northeastern Illinois
University. Governmental funding agencies for Central Office grants include:
US Dept. of Education, US Dept. of Human Services, Illinois State Board of
Education, Illinois Dept. of Public Aid, City of Chicago, and sister agencies.
Private foundation and donations may require financial reporting. This
reporting responsibility lies with the unit receiving the funds. If funds are
deposited internally, this money should be kept in an independent account
and expenditure invoices should be maintained. To prevent fund commingling
with legacy project 432 (citywide miscellaneous), funds sent to the Central
Office to be loaded to a budget line (for example, salaries), should be
segregated by program number.
New Schools for Chicago funds are being loaded into separate project
numbers. Principals are required for all expenditure reporting. Detailed
Expenditure Reports are available in Oracle.
Accounts Payable
Q: What is the procedure if a Central Office or school unit purchase order has
been canceled?
A:
1. Return the goods or merchandise, or
2. Pay for the goods from the unit’s internal accounts, or
3. Identify a non-grant funding line to request a new requisition.
Appendix G – FAQ
G-7
Q: What is a grant/project value end date and how does this affect units?
A: The Oracle purchasing system has program controls to read end dates and
liquidation dates of a grant numbers. Grant numbers in Oracle correspond
with the Legacy Project Numbers in the budget lines. Each grant has a
specific time frame in which goods/services must be delivered. All purchase
orders must be paid in full by the liquidation date. Most grant timelines
terminate at the end of the fiscal year. State grants and most federal grants
end in August and September.
Q: How long is a purchase order valid?
A: Non-grant related purchase orders are valid for a maximum of one year.
Grant related purchase orders have a Central Office pre printed final
acceptable delivery date and date of cancellation, usually sixty days after the
grant ends. If all invoicing and receipting is not completed by the cancellation
date, the responsibility for payment falls upon the unit for identifying a new
budget line from which to make the payment. Please avoid these issues by
spending early and ensuring vendors follow CPS Purchasing procedures. (If
a unit waits until the final days of a grant before completing a requisition, the
PO will state that goods/services must be delivered within a potentially short
time frame, the vendor may choose not to fulfill the order.)
Q: What is the colored notice my unit received from Accounts Payable?
A: Accounts Payable periodically sends out notices of cancellation to CPS units.
These notices are printed on color paper for attention purposes. The notice
indicates which of purchase orders will be canceled in sixty days. Vendors
receive the same notice. Unpaid invoices from a canceled purchase order are
the responsibility of the CPS unit to resolve. Additional funding will not be
provided.
Appendix G – FAQ
G-8
Internal Accounts Survey
Q: Schools are required to submit what Internal Accounts information?
A: Each year, all schools are required to submit four pieces of information: the
Internal Accounts Survey (completed online), May bank statement, May
M.Y.O.B.™ Bank Reconciliation Report, and the Asset Register. If applicable,
Asset Transfer/Disposal Forms should be submitted to The Bureau of
General Accounting. All information should be sent to Bureau of General
Accounting, 125 S. Clark, 14th-Floor, GSR 125.
Q: When are the required pieces of Internal Accounts information due?
A: Every year, all information is due by June 30th (the end of the CPS fiscal
year).
Q: What does this survey have to do with a school’s vending machine money?
A: Each school’s vending machine money is released upon acceptable
submission of all four pieces of information (online Internal Accounts Survey,
May bank statement, May M.Y.O.B.™ Bank Reconciliation Report, and Asset
Register).
Q: Do I have to complete the survey even if my school does not receive
vending machine money?
A: Yes, every school must complete the Internal Accounts Survey. Current
governmental accounting rules require CPS to disclose the status of all
accounts in the Comprehensive Annual Financial Report (CAFR) completely.
In addition, federal grants require schools to track all grant expenditures and
fixed assets over $500.
Q: What happens to the Internal Accounts information submitted to School
Financial Services?
A: Each year, the financial information schools submit is analyzed and then
compiled into the district-wide CAFR. Furthermore, a sample of surveys is
selected and audited for financial accuracy. Schools not in compliance may
be subject to an internal audit.
Appendix G – FAQ
G-9
Q: What if I forgot my unit’s Internal Accounts Survey password?
A: Your unit’s password may be obtained by E-mailing
[email protected] or calling 773-553-4271 (IAS1).
Q: I am working on the online survey. Why am I unable to move on to the next
section?
A: In the bank accounts sections, the system will not allow you to proceed to the
next section unless the bank statement balances with your book statements.
For all other sections, you cannot proceed if an unacceptable item populates
one of the fields.
Q: How do I view my school’s asset register from last year?
A: If your school has an asset register on file from a previous year, you can
access it through the online survey by clicking on the Fixed Asset File button
from the Main menu. This survey section has a “Fixed Asset Files” area.
Here, previous asset registers will be listed and available for download. To
download, follow the instructions under the file.
Q: What if my school purchases an asset after I have already submitted the
Asset Register to Internal Accounts?
A: Upon purchasing new assets, you should update your asset register
immediately. Afterward, please E-mail the updated version to Internal
Accounts at [email protected] so Finance can upload the
updated register to the online survey.
Q: How do I handle asset/equipment disposal?
A: Please follow the procedures in the Maintenance and Disposal of Assets
Board Policy (http://policy.cps.k12.il.us/documents/401.9.pdf). As part of the
procedures, please complete the Asset Transfer/Disposal Form and send it to
General Accounting. Also, remember to delete the item off the Asset
Register.
Q: Does the survey have to be completed all at once?
A: No. Every page you complete can be saved individually. If you need to quit
while you are working, simply save the page you have been working on and
then log off. The next time you log in, the saved information will be available
for you to continue work.
Appendix G – FAQ
G - 10
Internal Accounts Manual
Q: How do I get training for Internal Accounts?
A: School Business Services offers Internal Accounts training as well as training
in other fiscal areas. Please visit the training website at:
http://www.quia.com/pages/sbstraining.html
In addition, fiscal training manuals are located on the web at
http://www.cps.k12.il.us/AboutCPS/Departments/finance/schoolbusiness.html
Q: Why do I have to keep paper copies of all the reports as well as back-up
diskettes or CDs?
A: The current Internal Accounts manual requires schools to maintain a paper
copy of reports and a backup diskette of the data file as of the reporting
period. A backup diskette/CD should be sent to the Region Office quarterly.
The paper copies and diskettes/CDs serve as mutual backups of Internal
Account Financial Records as of the Reporting period. Each month,
prescribed copies of the printed monthly reports should be sent to your
Region Office. A backup diskette/CD of the date file as of the end of each
quarter must be sent to your Region Office. This process ensures that a copy
of that information is on file if it is needed.
Q: Why do I have to document every purchase and receipt?
A: Every purchase and receipt must be documented to verify that funds are
being used appropriately.
Q: How can I learn how to use M.Y.O.B.™?
A: School Business Services offers M.Y.O.B.™ training. In addition, an
M.Y.O.B.™ Training Manual is located on the web at
http://www.cps.k12.il.us/AboutCPS/Departments/finance/myob.pdf
Q: Is my school required to use M.Y.O.B.™?
A: No, however, every school must use an automated accounting package.
M.Y.O.B.™. is the recommended accounting software for the Chicago Public
Schools.
Appendix G – FAQ
G - 11
Q: Will I know before my school is audited?
A: Most audits are announced. Some, however, may be unscheduled. Thus,
schools must always be prepared for an audit.
Q: What should I do if my school receives an audit exception?
A: You must prepare a formal written response that includes not only plans to
correct the issues but also plans for new procedures to prevent future
occurrences. This should be sent to General Accounting and to the Region
Office.
Q: When and how often should I deposit money?
A: Money should be deposited at least once a week. It is best to do this at the
end of the week so that money is not left in the school over the weekend.
Q: How do I get Receipt Books?
A: To order receipt books, call All Printing and Graphics at 773-553-3048.
Q: How is M.Y.O.B.™ installed on my computer?
A:
Contact 3-HELP and put in a job ticket. Please note that OTS should install
MYOB 7 Plus - not MYOB 7.5. If this is a first installation and initial use of
MYOB, please call 773-553-2712 or 773-553-2714 and request the data disk
that includes the CPS chart of accounts.
Q: What documents should I maintain for all purchases?
A:
Packing slips and original receipts must be kept on file at the schools.
Q: How should goods be received at my school?
A:
Each school should have a central location where all goods are received.
Once the packing slip has been matched with the items delivered, the items
should be receipted in the Purchasing system within three days. Then the
goods may be delivered to their final destination(s).
Appendix G – FAQ
G - 12
Q: How do I calculate benefits for positions?
A:
The following table provides all benefit rates that are needed to apply when
opening a position. For additional information, please refer to the Budget
Handbook for Schools, Section D.
Legacy
Object
Oracle
Account
Local
SGSA
Federal
State
General Liability
Insurance
5490
54530
XXXX
0.20%
0.20%
XXXX
Teacher Retirement
Pension
5620
57135
7.00%
7.00%
17.57%
7.00%
Unemployment
Compensation
5640
57505
XXXX
0.20%
0.20%
XXXX
Worker’s
Compensation
5650
57605
XXXX
0.70%
0.70%
XXXX
Education Support
Personnel Pension
5670
57205
7.00%
7.00%
17.63%
7.00%
Hospital/Dental/Life
Insurance*
5680
57305
$5,800
$5,800
$5,800
$5,800
Medicare Tax**
5681
57405
1.45%
1.45%
1.45%
1.45%
Social Security***
5681
57405
6.20%
6.20%
6.20%
6.20%
Benefit
(Medicare and FICA are Social Security taxes and equal 7.650%)
The gross cost per employee for the fiscal year for health and dental
insurance is $5,800; $5,800, less an employee’s contribution. The group life
insurance cost is included in the amount. Cost is estimated by fund and is
subject to change.
All CPS employees hired after March 31, 1986, are required by federal law
to pay 1.45% of their earnings. CPS is mandated to match the same 1.45%
for the eligible employees.
Employees who are not covered by one of the CPS’ pension plans are
required by federal law to have Social Security deductions. This includes
non-board employees and high school students working under a “B” bucket
(Oracle Account 52140 or legacy Object 5214).
These benefit lines are automatically calculated for new positions during the
lump sum budget process. After the lump sum budget the school must
calculate salary and benefit costs.
Appendix G – FAQ
G - 13